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Türkiye’s reauthorization of studio apartments, commonly referred to as “1+0” units, will inject momentum into the housing sector, boost supply, help lower rental prices and support sub-industries, sector representatives say.
Studio apartments had been banned from new construction projects following a 2017 regulation. The Environment, Urbanization and Climate Change has now amended zoning regulations to allow developers to include them in new projects, provided they account for no more than 20% of total units in a building.
The regulatory update, published in the Official Gazette on Aug. 11, comes amid a slowdown in housing supply, which has brought small-unit apartments back into focus. Real estate investors and builders welcomed the change, citing shifting demographics, rising demand from students, young professionals and single-person households.
Catalyst for many projects
“The return of studio apartments will trigger a rapid movement in many pending projects and support over 250 sub-sectors. As in many global metropolises, the diversity of housing types suited to different lifestyles has become a necessity in Türkiye,” said Neşecan Çekici, chair of the Real Estate Investors Association (GYODER).
“This new regulation offers an accessible alternative for singles, young professionals and students. Diversifying the housing supply will help stabilize the rental market. For investors, these units stand out with high rental potential, fast turnover and portfolio diversification benefits,” Çekici told Anadolu Agency (AA).
Turks have been plagued by high inflation in recent years, which has sent housing and rent prices significantly higher. Inflation has more than halved compared to a year ago amid tight monetary policy, which is keeping borrowing costs high.
Inflation slowed to 33.5% in July, the lowest rate since November 2021, having peaked at 75% in May last year.
Latest data showed house prices in Türkiye rose by 32.8% in nominal terms in the 12 months to July. Yet inflation-adjusted figures revealed a 0.5% decline.
Month-over-month, they rose by 0.9%, the lowest monthly increase since July last year.
The latest change is part of the government’s effort to address housing affordability, broaden access to homeownership and strengthen the building stock.
Improving access to housing
The regulation will also help prevent resource waste, according to Tahir Tellioğlu, head of the Confederation of Construction Contractors (IMKON), who said students or those temporarily assigned to a region often had to rent larger homes due to the lack of studio options.
“This led to unnecessary resource use. That will no longer be the case. The development will positively impact both supply and demand in the housing market and make housing more accessible for citizens,” Tellioğlu noted.
Ziya Yılmaz, board chair at the Association of Housing Developers and Investors (KONUTDER), said the change aims to provide housing diversity aligned with shifting socio-demographic structures in cities and to increase the production of affordable housing, enabling more people to become homeowners.
Yılmaz highlighted that studio apartments offer high space efficiency and cost-effective construction models due to their smaller size. “These units provide functional living spaces for young professionals, students, elderly individuals living alone, and singles, especially in areas close to city centers,” he said.
“The demographic shift in society shows that 1+0 units are not just a construction preference, but also a necessary housing solution aligned with contemporary lifestyles,” he added.
Supply diversity
The reauthorization of studios will increase supply diversity and revitalize the housing market, according to Yılmaz. He said that although overall home sales have risen recently, the share of first-hand sales has dropped to 33%, down from 45% in previous years.
Despite tight monetary conditions and inflationary pressures, the housing market has remained resilient over the last year. From January through July, house sales rose 24.2% year-over-year to 834,751 units, the second-highest seven-month total ever, according to official data.
Yılmaz says studios could also offer an alternative solution to the sharp rise in rental prices, particularly in major cities like Istanbul, where he says small and mid-sized households lead housing demand.
According to Hakan Şişik, head of the Anatolian Side Construction Contractors Association (AYIDER), this was a necessary reform.
“Due to rising costs, housing production is not at a desired level. Demand exists, but supply has been lacking. Now, construction firms will be able to build more homes, especially in city centers,” Şişik said.
“As the number of rental units increases, prices will begin to fall. With interest rates also starting to decline, demand for these units will rise and the recent uptick in building permits will accelerate.”
