House construction slows, failing to meet needs

Türkiye needs to produce at least 800,000 houses each year to meet people's accommodation needs, but the number of construction permits granted for dwelling units remained at 262,000 in the first half of 2022.

In the face of the growing need for new houses, the government recently announced that it would launch two major projects soon.

The government will start what officials describe as the largest-ever social housing project in the country to build tens of thousands of houses in all 81 provinces.

President Recep Tayyip Erdoğan will unveil the details of the social housing project on Sep. 13, Environment, Urbanization and Climate Change Minister Murat Kurum said on Aug. 21.

Another large housing project will be launched, led by the Emlak Konut Real Estate Investment Company.

The government also announced last week that idle offices will be turned into dwelling units to address the growing problems in the housing market. The move means creating additional 50,000 houses.

Officials say those projects will help bring property prices and rents down.

Since 2019, house supplies have been insufficient. In 2016, construction permits were granted for 1 million dwelling units and this increased to 1.4 million units the next year. The number of construction permits declined gradually in the following years, dropping to 320,000 in 2019, even though picking up to 555,000 in 2020. Last year, permits were issued for 721,000 dwelling units.

Fewer permits granted

It takes around two years to finish the construction of a building, thus the dwelling units for which construction permits were granted in 2019 are not on the market yet.

The number of construction permits granted by municipalities...