ABSTRACT
This chapter discusses the share of the real estate sector in the Turkish economy over the period from 2000 to 2014. Significant increases in demand for Turkish real estate have resulted in a substantial amount of construction in the country. Hence, Turkey has one of the highest volumes of housing production in Europe. The chapter analyzes housing production and housing policies with the help of statistical data and demonstrates that the Turkish housing market operates under highly competitive conditions without much regulation, nor many incentives. It reviews the housing finance system in Turkey and points out that in years, mortgage loans and the real estate investment trusts (REITs) have been the new financial instruments that have linked the Turkish economy strongly into international financial markets. The chapter also discusses the development of a mortgage market, and the emergence and rapid growth of the REIT sector.
