Good news for those wishing to buy a property in Turkey

Good news for those wishing to buy a property in Turkey

Turkish President Recep Tayyip Erdogan announced 3 new packages that will revive the housing sector.

The support packages related to the housing sector, announced by President Recep Tayyip Erdogan after the cabinet meeting, are aimed at increasing the access of citizens who will buy their first home with affordable loans, to support the lira’s strategy, to increase the housing supply by completing unfinished buildings and to maintain stable housing prices for companies receiving subsidies .

first package

It is expected that first-time borrowers to purchase a home will be given a loan of up to 2 million liras for a term of up to 10 years and a monthly interest rate of 0.99 percent on the loan.

second package:

The second package includes new and used homes.

This package will be available for housing to be purchased provided that at least half of the housing value is disbursed into foreign currency deposit accounts opened before April 1, 2022, or the sale of gold to the Central Bank of Turkey.

This package, limited to the value of homes starting from 2 million pounds, and a mortgage loan in it for a period of up to 10 years and a monthly interest rate of 0.89 percent.

Erdogan explained that one of the objectives of this package is to “promote the conversion of foreign currencies and gold assets into the Turkish lira.”

Thus, citizens' access to housing will also be supported with affordable loans, in addition to the lira strategy that is currently being implemented.

third package

Through the construction sector credit guarantee package, which can benefit SMEs and non-SME construction companies.

As of the beginning of May, 20 billion liras of resources have been allocated to complete construction projects of which 40 percent have been completed and at least 50 percent have not been sold.”

In order to take advantage of this support, these companies will undertake to keep the home sales prices fixed for one year, share these prices with the public on the website and notify the lender.

Toki's 30 billion liras of funding will be provided for social housing projects aimed at making low-income citizens homeowners.

In order to prevent abuse of social housing projects, homes acquired in this way will not be allowed to be sold for 5 years.