TOKİ to Offer 15,000 Rental Homes in Istanbul at Half Market Price
Istanbul, April 27 – As the lottery draws continue for 100,000 social housing units in Istanbul under the nationwide 500,000 social housing campaign, attention is now turning to the 15,000 rental social housing units also planned for the city. The first delivery of these rental units is slated for August, raising questions about application criteria and pricing. Will there be priority groups for applicants? What will the rental prices be?
Details regarding the rental housing project, spearheaded by TOKİ (Housing Development Administration of Turkey), are beginning to emerge. Murat Kurum, Minister of Environment, Urbanization, and Climate Change, announced the initial delivery date for these highly anticipated rental homes.
President Erdoğan: “May it be beneficial for Istanbul and our country”
During the TOKİ draws in Istanbul, President Erdoğan stated, “We are establishing a rental system through TOKİ. We will take the first step of the project with 15,000 rental social housing units. I wish it to be beneficial and auspicious for our Istanbul and our country.”
First Rental Housing Delivery Expected in August
Minister Kurum confirmed that 2,000 rental units would be delivered to citizens in August. He emphasized, “The rental homes will not be located in remote areas but in city centers. Eligible citizens will be able to reside there for 3 years. All 15,000 units will be completed within 3 years.”
So, how will beneficiaries be determined for these rental homes? Who will be prioritized? Will household income be a factor? Will the apartment prices be more affordable than market rates? In which areas of Istanbul will they be built? Real Estate Expert Mustafa Hakan Özelmacıklı answered these questions for milliyet.com.tr.
Özelmacıklı stated, “The process for rental housing is planned to be completed within 3 years. Of course, 2,000 of these homes will be delivered in August.”
Application Categories and Priority Groups
“Categories are planned to be established for determining beneficiaries. However, priority is expected to be given to those who wish to vacate their homes during urban transformation, aiming to benefit families in need. I believe that priority will be given to those whose homes are demolished as part of urban transformation. This is because there are citizens, especially retirees, whose homes are being demolished under urban transformation, who have no other income, and are experiencing hardship. Therefore, I anticipate that household income, retirement status, and the urban transformation process will definitely be taken into consideration here.”
Rental Prices: Half the Market Rate
While there is no definitive figure for rental prices, it has been indicated that they will be below market value, possibly half the current rates. Özelmacıklı gave an example for Istanbul: “Currently, average residential rents in Istanbul are around 35,000 TL for 2+1 apartments and 30,000 TL for 1+1 apartments. However, for new constructions, 1+1 apartments are almost 35,000 TL, while 2+1 apartments rise to 42,000 TL. In terms of square meter prices, the average square meter rent in Istanbul has reached 380 TL, and in new constructions, it starts from almost 450 TL. Therefore, looking at the current average prices in Istanbul, if a 2+1 new apartment is around 40,000 TL, I think these homes could be around 20,000 TL.”
“Will Affect Market Price Balance”
Özelmacıklı further commented, “As is known, rent support can be provided to those whose homes are renewed under urban transformation. An assessment can be made to provide twice the amount of this rent support. This rental apartment example in Istanbul will be experienced for the first time. Rental apartments are a very essential need because you provide temporary accommodation for truly needy people. This will be a 3-year period, and these prices will definitely affect the market price balance and create a reference value. Therefore, while social housing production continues, I believe that its increase on the rental side will be more beneficial. At this point, various criteria, from citizens’ household income to the number of people in the household, will be evaluated.”
Application Process and Conditions
“There will definitely be an application process. I expect an application period to be announced around June for the 2,000 units planned for August. I believe there will be a scoring system. Many criteria will be considered, such as having a home in urban transformation, currently renting, a certain period of residency in that province, and household income. However, the urban transformation process will definitely be prioritized. I believe that the priority groups will be retirees and those whose homes are renewed under urban transformation.”
Delivery via Lottery System
“A 3-year contract will be made, and the process will proceed through TOKİ. TOKİ will effectively be the landlord, and TOKİ will be the point of contact. There are various organizations, such as Emlak Yönetim, a TOKİ affiliate, that provide aid and management services. Through these organizations, deliveries will be made to eligible citizens via a lottery system. Of course, criteria such as the management, maintenance, and inspection of the rented homes, how the homes were delivered, and whether any damage was caused upon departure will be determined. After three years, after a certain period is allocated for general renovation and repairs of the home, these homes will be planned to be re-rented.”
Locations of Rental Housing
“I believe these homes will be concentrated in areas where buildings are currently being constructed under urban transformation in Istanbul. These are especially regions like Tuzla and Sancaktepe on the Anatolian side. In addition, some partial stocks may be provided in Maltepe. On the European side, I think it will be within the framework of housing in the Esenler, Başakşehir, and Arnavutköy regions. This is because the regions where 250,000 and 100,000 units are being built are generally under urban transformation. Apartments in these areas can be evaluated.”
“There were also some places built in partnership with the municipality, some of which are still owned by TOKİ. For example, there are apartments in Gaziosmanpaşa due to various projects, or there are a small number of such apartments in different districts. New stocks can also be created from these. However, for more efficient management and follow-up, I anticipate that they will try to be given in similar and nearby locations as much as possible.”
Source: Milliyet.com.tr
