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 Tasarruf Finansman A.Ş., a subsidiary of Emlak Katılım Bankası. For the first time in Türkiye, the savings financing sector has been entered under state guarantee through a public bank.

Participants in the system make savings in installments aligned with their budgets. Only an organizational fee is charged for participation. Once a specified savings target is reached, the remaining financing amount is covered interest-free by Emlak Katılım Tasarruf Finansman. At the end of this process, participants can become owners of homes, vehicles, or covered commercial premises without taking out a loan.

^{Minister Kurum Shared Details of the New Era in Interest-Free Home, Commercial Premise and Vehicle Purchases} (Anadolu Ajansı)

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 continuing construction of 280,000 housing units across all 81 provinces of the country, and we will deliver them to our citizens as soon as possible, God willing. At this point, 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 Tasarruf Finansman. Every citizen will save in installments tailored to their budget. Citizens will visit Emlak Katılım branches and determine their monthly installment amount according to their budget for the home, vehicle, or commercial premises they wish to purchase. We will offer two models here. In our first model, a lottery system will be applied. Just as we distribute our housing units with TOKİ through notarized draws, here too we will conduct regular monthly draws under notarial supervision to provide financing support to participants in turn. With this support, citizens can acquire their home and car or their commercial premises. In the second model, we will apply our 'Customer-Based Savings Financing' model without a lottery. In this model, customers can set their delivery date according to their own chosen timeline rather than through a lottery, and without a lottery, they can purchase their home or car either by paying a down payment or by dividing the amount into installments. In both models, after reaching a certain savings threshold, the remaining financing amount will be covered by Emlak Katılım Tasarruf Finansman, allowing citizens to enjoy the joy of living in their home, operating their shop, or driving their vehicle while comfortably paying the remaining installments."^【2】 

^{Governor Gül Expressed Confidence That the Project Will Meet Citizens’ Expectations} (Anadolu Ajansı)

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

Gül highlighted that Türkiye’s economic and social development, rising expectations, urban transformation processes, earthquakes, and other disasters have further elevated the importance of housing needs. In this context, individuals have been making small-scale savings to become homeowners.

It was also reported that under the leadership of President Recep Tayyip Erdoğan, the Ministry of Environment, Urbanization and Climate Change has been developing regular projects targeting different demographic groups using various instruments, with new applications being implemented 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 Ajansı)

The system offers two distinct financing models:

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

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

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

For home and covered commercial premises 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.

Unlike bank loans, this system does not involve interest or maturity differentials. Financing is structured based on the principal amount only. As a result, participants can become homeowners or acquire commercial premises and vehicles as if they were paying rent.

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, new projects are planned in collaboration with the General Directorate of Housing Development (TOKİ) and the General Directorate of Real Estate and Housing.