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An Evaluation of housing finance in Turkey after 2000

Yüce, Serçin
Housing finance has faced with serious transformation all over the world by heavy influence of neoliberal ideology. Creation of built environment has been focused for ensuring capital accumulation and economic growth. Due to increase in population and urbanization rate, housing construction has placed large share of built environment production. Accordingly, while housing sector has grown, housing finance with mortgage loans has also increased to respond it. With the aim of examination of housing finance system of Turkey in 2000s in thesis, mortgage loans extended by commercial banks are studied depending on improvements in housing policy and housing sector under the influence of neoliberalism. In the 2000s, the role of Housing Development Administration, a government agency, has evolved from housing finance provider to a direct housing producer. On the other hand, commercial banks operating in the private sector have become more effective in providing housing finance through mortgage loans. In order to reach the aim of the thesis, role of HDA in housing sector was positioned and the increase in housing sector and the demand for mortgage loans in this period was analyzed with statistical data. Afterwards, in-depth interviews were conducted with 50 mortgage loan borrowers within the boundaries of Ankara Metropolitan Municipality to understand mortgage finance through the sample. As a result, it is understood that mortgage loans extended by commercial banks are not affordable and accessible for low – income people and those loans do not provide sustainable housing finance because of being highly sensitive to sudden changes in macroeconomic conditions.