As part of efforts to curb rising rent and housing prices, the government plans to sell public land in major cities to people who want to build homes, the Minister for the Environment, ‘Urban Planning and Climate Change, Murat Kurum.
Land sales in cities including Istanbul, Ankara, Izmir, the northwestern industrial province of Bursa, Konya and Adana could begin in August, Kurum disclosed.
The government is working on several options, such as building more affordable housing, to address the housing problem. Now another scheme is on the table: Selling public land.
“About two years ago, we were talking about oversupply in the housing market. With the campaigns launched at this time, a record number of homes were sold. This time, a month ago, a new financial package was unveiled to help people buy homes with lower interest rates on loans,” Kurum said.
President Recep Tayyip Erdoğan on May 9 announced measures to provide cheaper housing loans. According to the program, loans with a monthly rate of 0.99% and a term of 10 years will be granted to first-time buyers for houses worth up to 2 million Turkish liras (130,000 dollars).
“We are looking at different options. In addition to the government’s efforts to accelerate housing projects, we will take action with the Ministry of Treasury and Finance and municipalities to facilitate the purchase of housing for our citizens. These are the measures designed to start the supply,” Kurum said.
He explained that public land on the outskirts of cities, such as Gölbaşı district in Ankara, and Tuzla, Çatalca and Başakşehir districts in Istanbul, will be offered for sale at affordable prices on which people can build houses. .
“People can develop their own houses on a single piece of land, or they can collectively buy larger pieces of land and commission a company to develop a housing project,” the minister explained.
The size of smaller plots will be around 500-1,000 square meters on which one-story houses will be built, while three- to four-story buildings will be built on plots of 8,000-10,000 square meters, a Kurum added.
People will be required to present their plans to the authorities to obtain construction permits for these buildings, he said.
Land sales, which will continue until the end of the year, will be launched especially in provinces where property prices are rising, according to Kurum.
Kurum said his ministry is partnering with the General Directorate of National Property and the Housing Development Administration (TOKİ) to bring down the cost of land that will be sold in long-term installments.
“TOKİ has built 1.14 million housing units for low and middle income groups since 2002 and more projects will be unveiled. TOKİ will also develop industrial complexes to boost production and employment. Business units will be offered on these sites with a low down payment and installments of up to 15 to 20 years,” Kurum said.