A detailed guide about the Turkish company TOKI

Information about TOKI Company and the advantages of the residential projects it implements, the differences between it and Emlak Konut Company, and other details in our following article at Imtilak Real Estate.

Overview of Turkish TOKI Company

TOKI Company for construction was established under the name of the Mass Housing Administration and Public Partnership, by the instructions of the eighth President of the Republic of Turkey, Turgut Ozal, under the Mass Housing Law No. 2985, which came into effect in 1984.

The TOKI institution is administratively affiliated with the Ministry of Environment and Urbanization of the Republic of Turkey. It was established specifically to build residential apartments for middle- and low-income Turkish citizens. From its establishment until 2012, it built 524,698 housing units in 81 provinces, 800 districts, and 2,246 construction sites across Turkey.

In addition to residential projects, TOKI Company has undertaken the construction of various social facilities since its establishment, including:

• 1083 schools
• 19 universities
• 993 sports clubs
• 266 hospitals
• 96 health centers
• 984 shopping centers
• 42 libraries
• 722 mosques
• 20 football stadiums
• 15 restaurants
• 130 parks

TOKI Company operates on a partnership basis for building residential projects between the Turkish government and private construction companies. The land is owned by the government, and the state grants private construction companies the right to build residential apartments under the special supervision of government engineers.

One of the largest real estate projects presented by TOKI in the recent history of the Turkish Republic is the "Ilk Evim" project, dedicated to low-income citizens. This project, which is one of the largest real estate projects to be implemented by TOKI over five years starting from 2024, will include the construction of 500,000 homes, 250,000 plots of land ranging from 300 to 500 square meters equipped with infrastructure suitable for living, and 50,000 workplaces in 81 Turkish provinces.

It is worth noting that foreign investors are not allowed to buy property directly from TOKI, but they can acquire property after purchasing it from a Turkish citizen, through a transfer contract for the title deed at the Land Registry Directorate.

Learn more about: Title Deed in Turkey and its types

What is the purpose of establishing TOKI Company?

The main purpose of establishing TOKI Company in Turkey is to meet the qualified housing needs of low- and middle-income citizens and to fulfill the duties of the Mass Housing Administration as defined by Law No. 2985, which include the following points:

• Developing projects inside and outside Turkey directly or through its subsidiaries.
• Establishing companies related to the housing sector or participating in existing companies.
• Supporting industries related to construction materials or workers in this field.
• Building, encouraging, and supporting housing, social facilities, and their infrastructure in areas affected by natural disasters.
• Implementing or subjecting projects and applications to requests made by ministries.
• Implementing requests with profit-oriented projects to provide resources for the administration.
• Issuing domestic and foreign bonds and all types of securities with or without government guarantees.
• Providing individual and collective housing loans, loans for village architecture development projects, slum area transformation, maintaining and renewing historical texture and local architecture, and supporting interest on all these loans when necessary.
• Taking measures to ensure the participation of banks in housing finance.
• Ensuring that all types of research, projects, and transactions are carried out under official contracts when necessary.
• Performing duties stipulated by other laws and regulations.

Read more about: Real Estate Investment in Turkey and Real Estate Investment Tips in Turkey

Advantages of the housing projects implemented by TOKI Company

The residential projects supervised by TOKI Company or its subsidiaries are distinguished by their durability, strength, earthquake resistance, and the quality of construction materials used in general. For more about | Earthquake-resistant buildings in Turkey

Another feature of the housing projects implemented by TOKI Company is the legal soundness of the procedures, the presence of the necessary licenses for construction, compliance with international standards, allocation of large green areas, reliance on modern designs in finishes, and the creation of special recreational facilities for children within residential complexes.

Among the advantages of the residential projects supervised by TOKI construction company is the government guarantee provided for properties within these complexes. Projects with a government guarantee are highly sought after by major businessmen and Arab investors because all construction plans from A to Z are completely reliable and are under the direct supervision of government-appointed architects.

Usually, prices in projects supervised by Turkish government construction companies are meticulously studied, as they are based on real estate appraisal reports and are in line with the Turkish real estate market. In this context, TOKI construction company offers many property purchase options for low- and middle-income people through long-term installment offers.

Disadvantages of the housing projects implemented by TOKI Company

Despite the many positives of the residential projects implemented by TOKI Company in Turkey, they are not without some disadvantages that may negatively affect the lives of residents in these complexes, most notably:

• Not allowing foreign investors to buy directly from the properties it implements.
• Applying for apartments in TOKI housing projects is reserved for Turkish citizens, subject to criteria related to age and residency requirements that must be strictly met.
• Inability to dispose of the property through resale or leasing until all installments are completed.
• Offering long installment periods that may sometimes reach up to 20 years.

See Imtilak Real Estate offers to buy apartments for sale in Turkey with government guarantee and apartments for sale in Istanbul with government guarantee

How to register to buy an apartment in TOKI projects

Those wishing to buy a property in TOKI housing projects can view the available apartment offers on the official website of TOKI companies or their subsidiaries online. You can also visit the Imtilak Real Estate website, which offers a range of properties with government guarantees that are built under the supervision of the Turkish government.

After viewing the property offers online, you can book an appointment to go on field tours to the property locations and examine the property specifications on the ground. In this context, you can get a free consultation about the properties you want to buy by contacting the real estate experts at Imtilak Real Estate.

After obtaining real estate consultation and reviewing the field studies about the required property, the desired apartment is reserved, and you go to the headquarters of the construction companies (TOKI or Emlak Konut) to sign the purchase contracts and transfer the title deed. It is worth noting that Imtilak Real Estate saves you the trouble of going to the headquarters of construction companies in Turkey and takes care of all matters related to the title deed and transfer free of charge.

Read more about: How to buy property in Turkey or how to buy an apartment in Turkey step by step with a guide to apartment prices in Turkey for 2023.

Installment plans in TOKI housing projects

The housing projects affiliated with TOKI companies offer significant facilities in paying the amounts due for the property. The installment system in these companies is based on paying an initial down payment of about 35%, sometimes reaching 50% of the property's price, with the rest paid in long-term installments that may reach up to 240 months.

You can buy apartments for sale in installments in Turkey through us, with average apartment prices and types in the best cities and regions.

Prices of apartments in TOKI housing projects

We can give an example of the prices of apartments in government housing projects by TOKI through the largest real estate project mentioned earlier in this article, which was announced by the Turkish president in September last year. The prices of 2+1 apartments in this project are 608,000 Turkish lira, with monthly installments starting from 2,000 lira for 240 months. For 3+1 apartments, the price reaches 850,000 Turkish lira with installments of 3,187 lira distributed over 240 months.

Can foreigners buy an apartment in TOKI projects?

Foreigners cannot buy an apartment directly in TOKI projects, but they can own property in TOKI complexes by purchasing from a Turkish citizen through a transfer contract for the title deed at the Land Registry Directorate.

Foreigners can also buy an apartment in housing projects implemented by government construction companies, where sales contracts are organized directly between the foreign investor and the government construction companies that are the property owners. However, foreign investors cannot benefit from long-term installment offers in this type of contract. Here, Imtilak Real Estate intervenes to provide you with completely interest-free installment offers suitable for all categories of foreign investors.

Read more about: Guide to buying property in Turkey for foreigners 2023

What is the difference between TOKI and Emlak Konut?

TOKI and Emlak Konut are classified as the strongest government construction companies in Turkey and among the largest in terms of real estate development in the Turkish real estate market. Both companies pay great attention to providing many opportunities for real estate acquisition for foreign investors and strive to improve the living standards of citizens. They are highly reliable in building their residential projects, implementing all construction operations according to the laws in Turkey and under full government supervision.

Emlak Konut, established in 1953, has the largest share in achieving the urban renaissance and major real estate development witnessed in various Turkish provinces. Thanks to its efforts and financial strength, it has maintained its prestigious position at the forefront among real estate investment companies in Turkey.

Emlak Konut is similar to TOKI in its declared goals, as both companies work on developing the infrastructure of Turkish cities and building modern residential complexes and neighborhoods. They rely on the best quality standards in construction, based on partnership with the Turkish government. Because Emlak Konut is a main partner in construction and urban development activities for the Turkish government, all investment residential projects include the benefits of a government guarantee.

The most prominent difference between Emlak Konut and TOKI is granting the right to foreign investors to buy properties it supervises directly, without the need for transfer contracts from Turkish citizens. Accordingly, Imtilak Real Estate offers foreign businessmen a wide range of ready residential apartments with government guarantee, which is highly valued in the Turkish real estate community.

Emlak Konut agrees with TOKI companies in the available installment offers granted to Turkish citizens for buying residential and commercial properties, but differs in offering such installment plans to foreign investors.

You may also be interested in:

Real Estate Ownership in Turkey

Emlak Konut Company - Everything you need to know about it and about the government guarantee in Turkey

Real Estate Residence in Turkey and how to obtain it.

Turkish Citizenship and how to obtain it through investment or property purchase.

Buying apartments in residential complexes in Istanbul

Edited by: Imtilak Real Estate©