As a result of the industrialization efforts that started in the 1950’s, the rate of urbanization reached an annual average rate of 6% and this, combined with a population growth rate of over 2%, substantially increased the need for housing in Turkey.
From 1984 to 2007, the number of residences that received housing loans was 1,050,109. 1,049,933 of these houses have been completed.
The Housing Development Administration of Turkey (TOKİ) allocates sources dominantly to the construction of houses.
Within this, between 2003 and 2007, in 81 cities and 383 towns, 285,746 houses were constructed, 240,853 of which were social housings. Cooperating with 132 municipalities, irregular urbanization prevention projects were completed for a total of 113,072 houses and construction of 28,074 houses were initiated in 62 regions. As well as 285,746 houses, the construction of 354 schools, 61 sports facilites, 35 libraries, 281 trade centers, 226 mosques, 15 hospitals and 66 health centers were started and majority of these were completed. For 104 buildings registered under Renovation and Protection of Cultural Structure act, 7.8 million YTL has been provided in loans.
A 250,000 house target was reached in April 2007 and a new target of 500,000 houses was set. Within this scope, emphasis will be given to:
Improvement of slum areas and prevention of irregular urbanization projects in cooperation with the municipalities,
Social housing projects targeting the poor and people in the low income bracket,
Formation of Satellite cities in big cities such as Ankara, İstanbul, İzmir, Adana and Diyarbakır,
Consructing sample residential areas in medium scale cities and towns,
Development of a historical structure, protection of local architecture, and applications of Agrovillages,
Education complexes, social structures, tree planting and environmental developments,
Providing building plots with infrastructure.
Law No. 5582 published in the Official Gazette, on the modification of some laws for the House Financing System, was passed on March 6th, 2007. By the means of the legal arrangement in the house financing system, known as the Mortgage Law, it is aimed at improving the house crediting system depending on mortgages.