Real Estate Participation Savings Financing System

The Real Estate Participation Savings Financing System is an initiative developed in Türkiye to facilitate the acquisition of homes, commercial premises, and vehicles based on interest-free financing principles. The system is implemented through Emlak Katılım Savings Financing Inc., a subsidiary of Emlak Katılım Bank. For the first time in Türkiye, the savings financing sector has been entered under state guarantee through a public bank.

Operational Mechanism

Participants in the system make savings in installments aligned with their budgets. Only an organizational fee is charged for participation. Once a specified level of savings is reached, the remaining financing amount is covered interest-free by Emlak Katılım Savings Financing. At the end of this process, participants can own a home, vehicle, or covered commercial space without taking out a loan.

^{The Ministry Shared Details of the New Era in Interest-Free Home, Commercial Space and Vehicle Purchases}(Anadolu Agency)

Statements by Minister Murat Kurum

Minister Kurum stated that the government has made intense efforts to enable citizens to realize their dreams under state guarantee.

"We want everyone to have a roof over their head, a car beneath them, and a prosperous shop. To turn this aspiration into reality, we have launched countless campaigns and projects to fulfill our citizens’ most fundamental right: housing. We have constructed exactly 1,704,000 social housing units. Through these projects, we have brought approximately five million low-income citizens into safe and modern living environments. Currently, we are completing 280,000 housing units under construction across all 81 provinces of the country and, God willing, will deliver them to our citizens as quickly as possible. At this stage, we will continue supporting our youth and families with at least three children through a social housing campaign to be announced by year-end, in line with the perspective of a social state."^【1】 

"Above all, there is absolutely no interest in this system—only direct state guarantee. In this system, participants will first come together under the guarantee of Emlak Katılım Savings Financing. Every citizen will save in installments tailored to their own budget. Citizens will visit Emlak Katılım branches and determine their monthly installment amount according to their budget for the home, vehicle, or commercial space they wish to purchase. We will offer two models here. In our first model, there will be a lottery system. Just as we distribute our housing units built with TOKİ through notarized draws, we will conduct regular monthly draws under notarial supervision to provide financing support to participants in turn. With this support, citizens can acquire their homes and cars or their commercial spaces. In our second model, we will apply our 'Customer-Based Savings Financing' model without a lottery. In this model, customers can set their own delivery date rather than waiting for a lottery draw and can purchase their home or car either with a down payment or by dividing the total amount into installments. In both models, once a certain level of savings is reached, Emlak Katılım Savings Financing will cover the remaining financing amount, allowing citizens to enjoy the joy of living in their home, operating their shop, or driving their vehicle while comfortably paying off the remaining installments."^【2】 

^{Vali Gül expressed confidence that the project will meet citizens’ expectations.}(Anadolu Agency)

Statements by Istanbul Governor Davut Gül

Istanbul Governor Davut Gül noted that more than half of Türkiye’s population has changed cities at least once in the last fifty years. He emphasized that this trend has generated intense migration, particularly to major cities such as Istanbul. He highlighted that the primary need of migrating populations is housing, leading to increased demand for new residences.

Gül stated that Türkiye’s economic and social development, rising expectations, urban transformation processes, earthquakes, and other disasters have further underscored the importance of housing. He noted that individuals have increasingly turned to small-scale savings to achieve homeownership.

It was also reported that under the leadership of President Recep Tayyip Erdoğan, the Ministry of Environment, Urbanization and Climate Change has consistently developed targeted projects using various instruments and implemented new initiatives every month. Governor Gül expressed his confidence that the project will meet citizens’ expectations and thanked all those involved in its implementation.

^{Real Estate Participation Savings Financing System}(Anadolu Agency)

Financing Models

The system offers two distinct financing models:

Lottery-Based Savings Financing Model

While participants accumulate savings through predetermined installments, financing support is provided monthly to eligible participants through notarized lottery draws.

Customer-Based Savings Financing Model

In this non-lottery model, participants set their own delivery date. Financing can be arranged with or without a down payment in installments. Once the agreed date arrives, financing is allocated, and the remaining installments are paid during the use of the acquired property or vehicle.

Scope and Eligibility Criteria

The system is applicable across all 81 provinces of Türkiye. Eligibility requires only that participants be at least 18 years of age; there are no income requirements. Participants may obtain financing for new or used vehicles, homes, or covered commercial spaces. Individuals who already own a home or commercial property are also eligible to join the system.

Contract Durations

For housing and covered commercial space financing, contract terms of up to 120 months may be applied. For vehicle financing, terms of up to 60 months are permitted. These durations apply only to the financing period and do not encompass the total contract term.

Difference from Bank Loans

Unlike bank loans, the system does not involve interest or maturity differentials. Financing is structured on the principal amount only, enabling participants to acquire homes, commercial spaces, or vehicles as if paying rent, without incurring interest.

State Guarantee and Related Institutions

The Real Estate Participation Savings Financing System carries direct state guarantee. Under the coordination of the Ministry of Environment, Urbanization and Climate Change, cooperation is conducted with the Banking Regulation and Supervision Agency (BDDK). Additionally, plans are underway to develop new projects in collaboration with the General Directorate of Mass Housing (TOKİ) and the General Directorate of Real Estate and Housing.