Neoliberalism and neo-dirigisme in action: The state–corporate alliance and the great housing rush of the 2000s in Istanbul, Turkey

Abstract

This paper foregrounds the state–corporate alliance in real estate development in Istanbul since the early 2000s. Employing a geo-coded sample of 294 private housing development projects built since the early 1980s and in-depth interviews with the private development companies, the paper focuses on how the construction industry and the massive commodification of urban land produced a new state–space nexus. The underlying question here is the nascent shape of urban political-economy, the trends of housing construction, the cycles of boom and bust and the mechanisms of capital accumulation concerning the state’s centralising control over space. In this sample, a few critical aspects of the production of concrete space became apparent. Seven findings are discussed. First, the developers of Istanbul followed the clientelistic patterns in the urban built environment. The second aspect is that the state is the sole supply-side actor that determines Istanbul’s built environment. The third point in this analysis of urban development initiated by the private sector is focused on the fact that the real estate speculation is state-led. The fourth and fifth points are related to the Turkish real estate developers’ inability to procure financing for the duration of the construction process. The sixth factor in the evaluation of the private real estate sector in Istanbul is the geographical and class dispersal of active development projects. The seventh factor in understanding those real estate developers is their novel approach to marketing and advertisement and the way they employ architecture as an extension of public relations.