The project, proposed by Turkish President Recep Tayyip Erdoğan in 2019, promised a monthly installment plan equivalent to 44% of the minimum wage. However, the prices for the same apartments have now exceeded 1.5 times the minimum wage, leading equity holders to express dissatisfaction with unexpected changes to the payment plan.
In early 2019, President Erdoğan assured potential buyers that the project would be completed within one or one and a half years. However, according to a report on December 8 by Evrensel Daily, the construction of the housing complex has only just begun four years later, causing disappointment and unease among homebuyers.
The TOKİ project is planned to be developed in the Tuzla district of Istanbul, as part of its initiative to "build 100,000 units of social housing annually" and was announced by President Erdoğan on December 12, 2019.
The initial selling point of the project was that low-income families could enjoy a flexible payment plan, with installment payment terms of 240 months and a monthly payment of 894 Turkish liras (approximately $150 in 2019), with a 10% down payment.
However, the new plan has triggered dissatisfaction among equity holders. The new plan shortens the installment payment period to 180 months and increases the monthly installment amount to between 13,000 and 18,000 Turkish liras ($450-$620).
TOKİ also announced that the annual payment increase would be synchronized with the salary increases of civil servants. This may imply that apartment costs will double in the coming years.
One equity holder mentioned commitments made by government officials regarding the housing project and stated that the former Minister of Environment, Urban Planning, and Climate Change, Murat Kurum, assured them that the increased costs due to delays would not be transferred to citizens.
"The president said the apartments would be delivered within a year. Now, four years have passed, and construction has just begun," complained one homebuyer.
Equity holders also emphasized the high down payment required by the new plan.
"They say this project is for low-income families, but anyone who can pay 400,000 Turkish liras ($13,800) at once is not considered low income," said a prospective homebuyer, adding that they believe the project prioritizes profit and overlooks social considerations.
Many equity holders have shared their dissatisfaction with the housing project on the social media platform "Şikayetvar."
"We have waited for nearly four years, and we have been treated unfairly. Now, you have canceled the fixed interest rate option and are selling these houses at unimaginable prices," wrote one comment.
Another comment said, "As a low-income individual, how am I supposed to pay installments of 17,500 Turkish liras?"
TOKİ has received significant funds from the ruling Justice and Development Party (AKP) and has become a means for the authorities to engage in development in various regions domestically and, in some cases, property renovations. Those interested in purchasing a home must participate in a lottery to gain equity in the project's early stages.
