Countdown for 500,000 homes! How will payments be made?

Milliyet.com.tr/ÖZEL The exciting wait for the social housing initiative of the century has begun. Citizens looking to own a home are eagerly awaiting the announcement of the new social housing campaign. The massive construction campaign, encompassing all 81 provinces, will be the largest social housing project in Turkey's history.

Erdoğan to Announce Details of 500,000 Social Housing Campaign

As part of preparations made by the Ministry of Environment, Urbanization and Climate Change, TOKİ will build 500,000 housing units in all 81 provinces. For the first time, TOKİ will be producing rental housing in Istanbul.

President Recep Tayyip Erdoğan will announce all the details of the project at the grand launch event to be held in Başakşehir Kayaşehir on Friday, October 24.

'THE BIGGEST SOCIAL HOUSING MOVE'

So, when will applications for the 500,000 social housing campaign begin? What will down payments and payments be like? Will there be an income requirement? What will the initial price of the homes be? Real Estate Expert Mustafa Hakan Özelmacıklı, who assessed all the curious questions on the subject for milliyet.com.tr, said: “This will be the largest social housing initiative in the history of the Republic. Previously, 100,000 social housing units have been built. Construction of 250,000 units is ongoing. After the 453,000 units built in the earthquake zone so far, we can say that this is one of the government's largest social housing initiatives targeting housing supply. Unlike other social housing campaigns, some of the apartments in Istanbul will be rented out.”

WHEN DOES CAMPAIGN APPLICATIONS START?

Applications may begin being accepted at the end of this month. I estimate the application process will take approximately 1.5-2 months. Applications will be accepted at this point in all 81 provinces. A letter previously sent to the provincial governor's offices outlined the housing needs in each region and identified potential areas for public housing within the municipality's zoning area.

WHICH GROUPS WILL BE GIVEN PRIORITY TO APPLY FOR THE CAMPAIGN?

It's safe to say these social housing projects will be implemented for low-income residents . Of course, various categories have been distinguished. An additional quota will be allocated to homeless residents, low-income residents, retired residents, young people, and families of martyrs and veterans, as well as those in earthquake-affected areas. Special quotas are planned for young people and families with at least three children.

HOW WILL APPLICATIONS BE PROCESSED?

There may be a nominal fee at the application stage. A nominal fee of approximately 5,000 TL is required. Those who pay this fee will be entered into a lottery system. I believe applications will be opened through the e-Government system. Application fees are generally paid to public banks. There is no requirement to be a customer of that bank.

A person cannot submit more than one application. Only one application can be submitted on behalf of themselves, their spouse, and their children under their custody. Individuals over 18 are considered separate individuals at this point, so they are already eligible to apply.

'A 20% QUOTA WILL BE RESERVED'

Due to the "Year of the Family," a quota is planned to be allocated, prioritizing young people, newlyweds, and families with three or more children. We've previously seen examples of this for young people. It's safe to say that a 20 % quota is planned. Looking at these campaigns, it's also possible to see quotas allocated for families of martyrs, veterans, retirees, and people with disabilities.

WHAT ARE THE APPLICATION REQUIREMENTS?

Certain conditions were previously required for such projects. These included being over 18, residing within the province for at least one year, or being registered with that province.

WILL THERE BE AN INCOME LIMIT?

We also expect a certain amount of household income. I estimate that the total household income for the application period will not exceed three minimum wages. My estimate is a household income of around 60,000-65,000 TL.

HOW WILL THE HOUSE TYPES AND PAYMENTS BE?

When we look at housing types, we see that the majority of units are two-bedroom apartments. For families with three children, three-bedroom apartments are available. These campaigns are designed with a 10% down payment and terms of approximately 240 months. Installment payments are increased in January and July based on the increase in civil servant salaries . Installment payments generally begin after delivery. Payments are made with an increase in January or July, depending on the month of delivery.

WHAT WILL BE THE SQUARE METERS AND PRICE OF THE FLATS?

The numbers aren't very clear, but I think 2+1 apartments will average 80 square meters, while 3+1 apartments will average 120 square meters gross. I believe the figure for 2+1 apartments could be between 2.8 million and 3 million Turkish Lira. We can assume that apartment models will take shape accordingly.

HOW MANY HOUSES WILL BE LEASE-PROVIDED IN ISTANBUL? WILL APPLICATIONS START IMMEDIATELY?

Some of the housing will be built solely for rental purposes. While the exact number is not yet known, I estimate that Istanbul could have a rental housing stock of approximately 20,000. This will be the first time rental housing will be built in this context. Applications for rental housing will not be accepted immediately. I believe applications will be accepted once the housing units are built.