New economic program aims to boost home supply

ISTANBUL

The new medium-term program the government unveiled last week aims to boost home supply and help low-income groups have access to affordable houses.

The program noted the supply-demand imbalance in the housing market, which resulted from the decline in home production during the pandemic.

It also pointed out the problems in accessing affordable housing due to the skyrocketing prices and high-interest rates.

The program pledges to take measures to boost home supply as well as implement social housing projects to compensate for the losses in house stocks that emerged after the devastating February earthquakes.

Loans will be provided by public institutions at favorable conditions to first-time home buyers, the program said, adding that the financing will be made available for the projects that will be developed especially for medium- and low-income groups.

Meanwhile, Finance Minister Mehmet Şimşek said on Sept. 8 that the availability of external funding enhances the successful execution of the program.

“The World Bank's decision to significantly increase its exposure to Türkiye is a further endorsement of our medium-term economic program,” Şimşek wrote on X, noting that the Bank plans to more than double its funding for Türkiye's public and private sector to $35 billion over the next three years.

This is in addition to the United Arab Emirates’ previously announced three-year investment plan totaling nearly $51 billion, Şimşek said.

“The availability of such significant external funding undoubtedly enhances the successful execution of our program.”

The medium-term economic program (through well-calibrated monetary, fiscal and structural policies) aims to achieve macroeconomic and financial stability, promote inclusive and sustainable growth, and successfully complete the post-earthquake reconstruction, the minister said.