Turkey lowered interest rates Sunday for those eligible to buy homes or businesses in certain areas where buildings are deemed unfit to withstand natural disasters, including earthquakes, to encourage reconstruction that would strengthen buildings.
The government lowered rates by 600 basis points annually for eligible home buyers and 450 basis points for those who are allowed to buy businesses under urban regeneration projects, according to the Official Gazette.
The move comes shortly after President Recep Tayyip Erdogan announced plans to spend $50 billion building 500,000 new homes and 50,000 offices in what he billed as Turkey’s biggest-ever home-ownership push, in an effort to win over lower-income voters ahead of next year’s elections.
Erdogan Vows Half-Million New Homes in $50 Billion Vote Push
The newly introduced rate discount is valid to a limit of 600,000 liras ($32,000) for homes and to a limit of 250,000 liras ($13,500) for businesses, according to the Gazette. Discounted rates are also offered for eligible citizens who want to strengthen the structure of their homes or businesses, it said.
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