A New System to Reduce Property Prices in Turkey
Real Estate Marketing and Sales Professionals Association (GAPAS) states that housing prices in Turkey are no longer accessible to everyone, especially after the recent price increases. However, it is thought that this problem can be overcome with some changes in the property system.
A new ownership system should be adopted in order to prevent rising housing prices due to reasons such as rising construction costs, foreign exchange, and inflation. While the supply decreases in the sector, the increase in the demand of domestic and foreign investors is also seen as another reason for the increase in prices. In order to solve all these problems, we recommend an urgent transition to a new ownership system.
A New System in Turkey: Sale of Right of Use
GAPAS proposes a formula based on a change in the ownership system as a solution to the recent price increases. It is stated that the new ownership system, which is similar to the "long-term ownership" model used in the United Kingdom, could be implemented in Turkey.
This system, which is called "usufruct right", can be briefly defined as leaving the right of use of land to a tenant for a long period of time such as 50, 75, or 100 years.
How Does the New Property System Work?
The ownership of the land remains with the first owner, but the buyer who purchases real estate from the project built on the land does not pay the price of the land as the sale price, but only the construction cost of the contractor. The buyer also commits to pay long-term rent to the land owner. It is estimated that buyers will be able to purchase houses at more affordable prices thanks to this method.