Market experts are wondering whether the TOKI social housing project, which should cover a quarter of a million families, will help reduce the prices for rented housing?
Theoretically yes: due to the actions of the Housing Construction Administration (TOKI), the poor have the opportunity to purchase budget apartments or a plot for the construction of their own house on preferential terms. Just today, on October 25, 2022, the foundation of the first residences in the largest social housing project in the history of the republic will be laid.
Already, more than 8 million Turkish citizens have been registered in the lists of applicants - applicants for participation in one or another housing-related action. And although this indicator takes into account, among other things, all family members, and not just «households», nevertheless, it is obvious that demand is not just high, but colossal.
In addition to providing a roof over the heads of needy categories, this social housing project is expected to affect the reduction of prices for residential real estate, as well as the rent in the direction of its reduction. Moreover, some of the newly erected residences will not be sold, but leased. Thus, the construction of social apartments and houses that has already started will allow the impermissibly inflated «bubble of rental rates» to decrease somewhat, and rental prices to stabilize. However, the effect of the first stages of the project will appear more clearly at the end of 2022, hardly earlier.
The reduction of rental rates, including forced, has been talked about for months. The rental housing market is also changing in other senses: in particular, the preferences of landlords have changed.