The launch of the GYODER New Housing Model, developed by GYODER to find a solution to the “housing” problem, which is on the agenda of the whole world, was attended by GYODER President Mehmet Kalyoncu, GYODER Vice Presidents Neşecan Çekici, Sertac Karaağaoğlu, Cem Yılmaz, GYODER Executive Board members Prof. Dr. Ali Hepşen and Assoc. Dr. Serhat Başdoğan and Head of Public-Private Cooperation (PPP) Research Center Dr. It was held at Atatürk Cultural Center (AKM) with the explanations of Eyüp Vural Aydın.
Speaking at the opening of the event, GYODER President Kalyoncu stated that they established an “Accessible Housing Committee” 1.5 years ago in order to provide accessible rental housing in Turkey, and introduced the “GYODER New Housing Model”, which will proceed in line with their main vision of 4T, namely “Technology”, “Design”, “Nature” and “Society”.
Kalyoncu stating that the biggest cost in the process of producing housing is the cost of land, “Currently the average of Turkey is 50 percent. Public institutions, local governments or similar institutions in the hands of the lands in the hands of a certain period by evaluating the method of public-private cooperation and a rental tariff can be produced by the top thousands of low-rent housing. We create the heat and eliminate the problems between the tenant and the lessor. ” he said.
Kalyoncu said that this model will reduce the cost of the land to zero, thus reducing the rents by half, and while the residences will be built on the lands that will be opened for use with the public and private sector cooperation model, the ownership of the lands will remain with the state.
Pointing out that the rents will be taken out of the control of the landlords and given to the equitable supervision of the state and the management of corporate companies, Kalyoncu said, “With this model, it is aimed to complete the housing production within 1 year. In this way, the settlements in the vicinity will be cheaper with low rental rates. Horizontal architecture, domestic material and energy savings will also be stipulated in the contracts. In this way, we will provide a solution that will not exceed 30-50 percent of the household income of the middle and lower middle income group.” said
“We are reducing the rents by half by gaining a serious cost advantage”
Mehmet Kalyoncu emphasized that this model is a space-independent model and continued his speech as follows:
“The more the houses to be produced are in the center of the city, the more it will help to lower the rents in the center. But no matter what happens, the effect of the space will be zeroed here, as the cost of the land is zeroed. Construction costs do not change in a city within the borders of the same province. Here, the subject described as rent was the cost of land. With this model, we get a serious cost advantage and reduce the rents by half.”
GYODER Vice President Cem Yılmaz also mentioned in his speech that the coastal areas of Büyükçekmece on the European side, Beylikdüzü, Bakırköy, Avcılar, Küçükçekmece, Bahçelievler, and the districts of Maltepe, Kartal, Pendik, Sultanbeyli and Tuzla on the Anatolian side carry a high risk of earthquakes, and said that the GYODER New Housing Model will produce residences that can also be used as reserve housing, and this will pave the way for urban transformation in Istanbul.
Yılmaz said, “This way, a district with a population of 650 thousand can be developed. Together with rental houses, we will actually establish an ecosystem in the region with investments in areas such as health, education, tourism, and retail. Green and open spaces, which are lacking in the urban development of Istanbul, constitute the key point of the project. Making the right planning of public spaces, prioritizing the use of pedestrians and bicycles, constructing durable, harmonious and resistant sustainable urban spaces, will also solve the problem of ‘best practices’ in our country, which is the most accessible urban transformation after the earthquake. We offer the key to the solution.” he said.
“We can do an exemplary job again in the world”
GYODER Vice President Neşecan Çekici reminded that Turkey is the first market in Europe and the second largest among OECD countries with annual sales of approximately 1.5 million residences.
Sharing the data on the attractive housing deficit, he continued his speech as follows:
“In the data announced by TURKSTAT, we see that the rate of home ownership has declined to 56.7 percent (the EU average is 70 percent). This rate was above 65 percent in the 2000s. Again, the number of couples getting married per year has increased from 550 thousand to 600 thousand in this period. There is an increase in divorces from 90 thousand to 180 thousand. As of 2022, the number of single-person households has exceeded 5 million in the housing sector, which is called rental housing. “There is the truth. We estimate this figure to be around 700 thousand. Of course, there are those who do not want to let their houses on rent, there are also those who show a 25% rent increase as a reason. But we have an ‘earthquake’ fact beyond all these. The whole world is talking about the successful public-private cooperation (PPP) model that Turkey has signed in health and infrastructure. If we can apply this model in the housing sector, it will be an exemplary job in the world.”
Underlining that access to housing is a major problem in the world and in Turkey, Assoc. Dr. Serhat Başdoğan, on the other hand, stated that while the average year needed for a family to buy a 60 square meter house in the city center in Turkey was 6.8 in 1985, this period is over 10 years today.
“The living standards of the citizens will also increase”
Head of the PPP Research Center, Dr. Eyüp Vural Aydın shared the advantages of the PPP model. Pointing out that this model has many benefits to both the public, the private sector and the citizens, Aydın continued his speech as follows:
“The advantages provided by the system to the public sector are listed as maximum benefit from the skills of the private sector, reduction of costs, rapid completion of projects and keeping the property in the public, while the advantages it provides to the private sector can be listed as the opportunity to sign long-term contracts and investment, the absence of processes such as difficult development plans-licenses, and the culture of creating cooperation with the public. Undoubtedly, the greatest benefit is provided to the end user. The standard of living will also rise.”
There are two options for financing the model.
GYODER Vice President Sertac Karaağaoğlu also noted that there are two options for financing the model. Stating that the first option is bank financing, Karaağaoğlu said, “The public authority allocates the land for 49 years. It goes to the construction-lease-operation tender according to the price it will determine. The company that takes the job does the work by using a loan from the bank in return for the right of construction mortgage of the land, independent sections are formed. The rightful owner uses the house for the remaining 49 years. He pays the loan with the rents collected by renting the houses.” said.
Expressing that the second option is capital markets, Karaağaoğlu continued his speech as follows:
“Here, the public authority allocates the land for 49 years. According to the price it will determine, it goes to a construction-lease-operation tender. The company that gets the job issues a real estate certificate for the construction cost + profit. It does the job with the financing it will provide by issuing a certificate for each square meter within the framework of the approval of the CMB. Each certificate owner resides in its own square meter for 49 years. option also strengthens the viability of our model.”
prof. Dr. Ali Hepşen, on the other hand, drew attention to the issuance of securities, emphasizing that the financing needed by the private sector within the scope of the project should be provided through the issuance of securities based on rental income.
Hepşen said, “The inclusion of securities to be issued in their portfolios should be encouraged by private pension companies that aim for a long-term investment strategy.” he said.