The roles of the state in the financialisation of housing in Turkey
The document titled “The Roles of the State in the Financialisation of Housing in Turkey” examines the complex relationship between the Turkish state and the financialisation of housing. It argues that the state plays a crucial and active role in promoting housing financialisation through various legislative, regulatory, and financial frameworks that facilitate the penetration of global financial capital into the housing market.
Background
In Turkey, the financialisation of housing refers to the process by which housing is increasingly treated as a financial asset rather than merely a social good. This shift has significant implications for access to affordable housing, particularly for low- and middle-income families. The document highlights that this phenomenon is not unique to Turkey but is part of a broader global trend where states actively engage in creating conditions conducive to housing financialisation.
Key Roles of the State
1. Legislative Frameworks
The Turkish government has introduced several laws aimed at facilitating housing financialisation. These laws create an environment where domestic and international capital can invest in land and property markets. The document details how these legislative measures have been designed to attract investment by offering incentives and reducing regulatory barriers.
2. Financial Instruments
The state has developed various financial instruments to encourage speculation in housing markets. This includes creating frameworks for mortgage financing and real estate investment trusts (REITs), which allow investors to pool resources and invest in real estate projects. Such instruments make it easier for investors to view housing as a lucrative asset class, thereby driving up prices and making it more challenging for ordinary citizens to afford homes.
3. Public Land Enclosure
The document discusses how the Turkish state has engaged in enclosing public land for private development. By converting public land into profitable real estate ventures, the government has facilitated the commodification of housing. This practice often leads to conflicts over land use, particularly affecting informal settlements where residents may lack formal tenure rights.
4. Urban Regeneration Projects
Urban regeneration initiatives have been a significant tool for the state in promoting housing financialisation. These projects often involve partnerships with private developers to revitalize urban areas, which can lead to increased property values but also displacement of existing residents. The document emphasizes that while these projects aim to improve urban infrastructure, they frequently prioritize profit over social equity.
5. Criminalization of Informal Development
To maintain control over housing markets, the Turkish state has employed legal and penal measures against informal development. This includes criminalizing unauthorized construction and informal settlements, which disproportionately affects low-income families who often resort to such measures due to a lack of affordable options. The document argues that this approach serves to suppress dissent against state-led regeneration efforts.
Implications for Housing Access
The financialisation of housing in Turkey has profound implications for access to affordable housing. As housing becomes increasingly commodified, many low- and middle-income families find themselves priced out of the market. The document highlights that while financialisation may attract investment and stimulate economic growth, it also exacerbates social inequalities by prioritizing profit over people.
Conclusion
In conclusion, the document asserts that the Turkish state’s role in the financialisation of housing is multifaceted and deeply embedded in its legislative and regulatory frameworks. By actively promoting conditions favorable to financial capital, the state has reshaped the housing landscape in ways that prioritize investment over accessibility. The findings suggest that a reconceptualization of the state’s role is necessary to understand its direct involvement in housing financialisation and its impact on social equity.
The study calls for a critical examination of these dynamics, advocating for policies that balance economic interests with social justice to ensure that all citizens have access to adequate and affordable housing. As Turkey continues to navigate its complex housing challenges, understanding the interplay between state actions and market forces will be essential for developing effective solutions that address both economic growth and social needs.
Further reading: Making Norway’s Housing More Affordable and Sustainable
The roles of the state in the financialisation of housing in Turkey researchportal.helsinki
[PDF] financialization and the state: elaborations on the turkish case open.metu.edu