General Overview On The Urban Transformation Process And It's Legal Framework In Türkiye

Earthquake risk, rapid urbanization, and an aging building stock rendered urban transformation one of Türkiye's most critical policy priorities. This process goes beyond mere physical renewal and entails a multidimensional legal framework encompassing areas ranging from property regimes and zoning law to financing models and contractual relationships.

Drawing on our extensive experience in the real estate sector and the recurrent questions we encounter, this article aims to outline the evaluation of urban transformation in Türkiye, its current legal framework, and the key issues to the fore in its practical implementation.

General Framework

The primary legal basis for urban transformation in Turkish law is Law No. 6306 on the Transformation of Areas Under Disaster Risk (the "Law"), together with the Implementing Regulation of Law No. 6306 (the "Implementing Regulation") which governs and details the procedures and principles for its implementation.

Originally shaped in the aftermath of the 1999 Marmara Earthquake and the tragedies experienced in its wake, the legal framework primarily seeks to ensure the protection of life and property. Beyond structural safety against disaster risk, it also addresses chronic urbanization issues by facilitating the renewal of technically obsolete and unsafe buildings, with the objective of creating safe, planned, and sustainable living environments.

The principal actors in urban transformation projects are the Ministry of Environment, Urbanization and Climate Change (the "Ministry"), the Urban Transformation Presidency (the "Presidency") established within the Ministry, the Housing Development Administration of Türkiye ("TOKİ"), and metropolitan municipalities authorized pursuant to Law No. 5216 on Metropolitan Municipalities.

On 7 November 2023, No. 7471 on the Transformation of Areas at Risk of Disaster and on Amendments to Certain Laws and Secondary Law No. 375 significant amendments aimed at accelerating and strengthening the transformation process. Subsequently, the Regulation Amending the Implementing Regulation dated 4 February 2026 clarified certain procedural and substantive aspects of implementation. Said amendments established the Urban Transformation Presidency under the Ministry and consolidated substantial planning, determination, implementation, and coordination powers within this single administrative body, with a view to addressing practical challenges and reducing delays stemming from inter-institutional bureaucracy.

According to publicly disclosed data of the Ministry, approximately 3.3 million independent units have been transformed nationwide since 2012, with over TRY 180 billion in public funds allocated to urban transformation projects. This nearly fourteen-year-long process has gained significant momentum, particularly over the past five years. In Istanbul alone, more than 924,000 independent units have reportedly undergone transformation.

In this context, particularly in densely populated metropolises such as Istanbul, characterized by an aging building stock and high seismic risk, urban transformation has become a practically unavoidable and widespread phenomenon, especially with respect to centrally located and high-value properties. Transformation activities of such scale and continuity have fostered the emergence of a significant and dynamic market, not only in terms of urban planning and housing policies, but also across the construction, cement, architecture, engineering, financial services, and legal sectors.

Core Legal Concepts and Procedural Steps Under the Law

Pursuant to the Law, implementations to be carried out in areas subject to urban transformation are structured around three fundamental concepts: risky area, risky building and reserve building area.

• Risky Area: A risk area is an area declared by Presidential decree because it poses a risk of loss of life and property due to its ground structure or the construction thereon. In this respect, the Law does not confine urban transformation solely to individual structures but also permits area-based intervention.
• Risky Building: A risky building is one that has been determined by the Presidency, based on scientific and technical data, to have completed its economic lifespan or to pose a risk of collapse or severe damage, irrespective of whether the area in which it is located has been declared a risky area.
• Reserve Building Area: A reserve building area is an area designated by the Ministry, either upon application or ex officio, for use in urban transformation projects.

The urban transformation process commences with the Presidency identifying the project area and determining the existence of risky buildings.

Below, we present a concise overview of the main stages of the urban transformation process.

Risky Building Determination

The determination of risky buildings is conducted either ex officio by the Presidency or, at the expense of the owners, by institutions and organizations licensed by the Presidency at the request of the property owners. An application by a single property owner to a licensed institution or organization for risky building determination is sufficient; prior agreement among all owners or acting together is not required. Upon completion of the technical examination by the Presidency or a licensed organization, if the subject building that of the application is deemed risky, it acquires the status of a "risky building."

Notification and Announcement Procedures for Risky Building Determination

The risky building determination is communicated by the Presidency to the land registry directorate within 10 business days from the date of determination at the latest and is annotated on the title deed record. The determination report is posted on the risky building, notification is made to the owners via e-Government, and the relevant mukhtar announces a 15-day period, with the last day of the announcement deemed as the date of notification to the owners.

Through this method, delays arising from conventional notification procedures have been eliminated, ensuring that the process progresses within a predictable timeline and preventing indefinite prolongation. In the event of an objection, the technical committee examines and resolves it.

An objection to a risky building determination may be filed within 15 days from the date of notification before the relevant Provincial Directorate of the Ministry. Such objections are reviewed and resolved by a technical committee, primarily on the file and, where deemed necessary, through an on-site inspection.

Although the Law does not prescribe a specific statutory time limit for the committee's decision, in practice the objection process is generally concluded within approximately 1-3 months. While no official statistical data has been publicly disclosed in this regard, it is observed in practice that the majority of objections filed against technically compliant risky building determinations are rejected.¹

It should further be noted that the committee's decision on the objection constitutes a final administrative act. No further administrative appeal is available against such decision; however, it may be challenged before the administrative courts through an annulment action. The filing of such action does not automatically suspend the demolition process.

A separate stay-of-execution order must be obtained in order to suspend enforcement.

Finalization of Determination Decision, Demolition Order, and Disposition Restrictions

If no objection is raised or upon the technical committee's confirmation of the risky building determination, the determination becomes final. Within this framework, transfers, leases, or the establishment of limited in rem rights by the owners are restricted, aiming to prevent delays to the transformation process through individual transactions.

The demolition decision is rendered, and notification regarding demolition and evacuation is served to the owners and tenants through the same simplified procedure, with the mukhtar's (locally elected neighbourhood representative) announcement deemed notification on the 15th day.

Evacuation and Demolition Process

Following the finalization of the decision regarding the determination of the risky building, an evacuation and demolition record is prepared and posted on the risky building. The decision is also notified to the owners via the e-government portal, and a public announcement is made at the relevant mukhtar's office, with notification deemed completed upon the expiry of 15 days.

Following deemed notification, the owners are required to ensure evacuation and demolition within the period specified in the posted announcement. Under the Law, the period granted for evacuation and demolition is regulated as a maximum of 90 days (peremptory period). During this period, priority is given to the owners' reaching agreement with a contractor.

However, if the owners fail to carry out evacuation and demolition within the maximum 90-day period, the municipality proceeds with evacuation and demolition of the risky building with the support of law enforcement authorities. and demolition mechanisms prevents the de facto deadlock of the transformation process. Even in cases where evacuation or demolition, the administration is authorized to carry out the relevant procedures concerning the risky building through law enforcement authorities.

Condominium Owners' Decision Process

In demolishing risky building and implementing measures in such areas, reaching agreement with the owners is the primary approach. Upon being informed of the decision to transform the urban area, the owners convene in accordance with the procedure outlined in the Condominium Ownership Law No. 634. Before demolition, they decide on matters such as reconstruction, the sale of shares, construction in return for land share, revenue sharing, and other revaluation methods.

Decisions are adopted by a simple majority, determined not by the number of owners but by their land shares. The land shares of owners who do not participate in the decision are sold to the consenting co-owners through public auction, thereby preventing dissenting owners from de facto blocking the transformation process.

Although the right to file a partition action following demolition is preserved, even a partition action does not prevent the simple majority from rendering and implementing decisions.

Construction and the Completion of the Project

Following the adoption of a reconstruction decision by simple majority of the condominium owners, the owners may enter into an agreement with a contractor. In practice, such agreement is typically executed in the form of a notarized construction agreement in return for land share or a revenue-sharing construction agreement.

The contractor undertaking the project is required to satisfy the minimum technical and financial qualification criteria determined by the Presidency.

Upon completion of the evacuation, and upon request of the Presidency, TOKİ, or the relevant municipality, and taking into account the views of the right holders, electricity, water, and natural gas services to the Risky Building may be suspended or not supplied. Upon submission of the document evidencing the suspension of such utilities by the contractor, the condominium owners, or their representatives, the municipality issues the demolition permit.

Pursuant to the Law, the contractor is required to obtain building completion insurance or provide the necessary security. Subsequently, architectural and structural projects are prepared, and an application for a building permit is filed under Zoning Law No. 3194. Construction commences upon issuance of the building permit.

Urban transformation projects, given their nature of eliminating conditions posing danger to human habitation and natural disaster risks and carrying out reconstruction, are treated as matters of urgency, and the applicable legal framework is designed to ensure that the process proceeds as expeditiously as possible. In practice, project completion takes approximately 18-24 months.

Circumstances that could extend the process have been eliminated through limitations on and abbreviated timeframes for objections, and through mechanisms established against dissenting owners, in line with this overarching legislative approach.

Key Mechanisms of the Urban Transformation Process

Urban transformation is not merely a technical activity aimed at rebuilding buildings; rather, it has been designed as a comprehensive transformation model encouraged by legislation and supported by administrative and legal instruments. Through core mechanisms such as risky building determinations, majority-based decision-making procedures, expropriation tools, and financial incentives, the process seeks both to accelerate implementation and to ensure legal certainty. The principal mechanisms ensuring the effective and predictable functioning of the process are briefly outlined below.

» Reduction of the Decision-Making Quorum to Simple Majority (50% + 1)

Whereas matters such as demolition, project fundamentals, and contractor selection were previously adopted by a 2/3 majority of land shares at condominium owners' meetings, the quorum has been reduced to simple majority (50% + 1), thereby substantially accelerating the process.

» VAT Exemption

Land and plot transfers carried out by the Presidency and TOKİ have been included within the scope of VAT exemptions under the Value Added Tax legislation. This has reduced land costs and related financing burdens and strengthened the public-private partnership structure of urban transformation.

» Regulation of Meeting Procedures of Condominium Owners

To prevent disputes arising from meeting procedures in urban transformation projects, the procedures and principles governing condominium meetings have been explicitly regulated. A simplified notification procedure has been introduced, and an invitation by a single owner is deemed sufficient, thereby reducing the likelihood of procedural disputes among owners.

» Pre-Emption / First Offer Mechanism

Where owners adopt a reconstruction decision by simple majority following demolition of the building, the shares of dissenting owners are, as a rule, offered for sale by public auction to the consenting co-owners.

If the sale is not completed, in Risk Areas and Reserve Building Areas, such shares may be purchased by the Presidency, the relevant municipality, or TOKİ upon payment of the sale price. In the case of individual risky buildings, shares may be sold to third parties, provided that the purchaser accepts compliance with the agreed reconstruction terms.

If the owners decide to sell the entire property following demolition of the risky building, such sale must first be offered to the Presidency, the Ministry's affiliated or related entities, the relevant municipality or TOKİ.

» Development Rights Transfer Mechanism

Where, due to ground conditions within the project implementation area, reconstruction is not possible, or where no development right exists due to disaster risk, the development right of the parcel on which the risky building is located may be transferred to another parcel through a development rights transfer mechanism.

Subject to the fulfilment of the required statutory conditions and the consent of the other relevant property owners, the development right may be transferred to another parcel, and the owners of the original parcel may become co-owners in the transferee parcel.

Any implementation carried out on the new parcel is likewise deemed an urban transformation implementation within the scope of the Law.

» Parcel Consolidation

Parcels entirely containing risky buildings may be consolidated by simple majority. However, where parcels containing no structures are to be consolidated together with parcels containing risky buildings, unanimity of the relevant owners is required.

This mechanism enables urban transformation projects to be implemented on a broader and more comprehensive scale.

» Temporary Housing or Workplace Allocation, Rental Assistance, Credit or Interest Support

The Law and secondary legislation provide various assistance mechanisms for entitled persons who actively participate in the transformation process and opt for agreement-based implementation. Within this framework, owners, tenants, limited right holders, and other lawful occupants of evacuated buildings may be granted temporary housing or workplace allocation, rental assistance, and credit or interest support where required by the implementation.

» "Half is on Us" Campaign

In Istanbul, a financing mechanism has been introduced enabling risky buildings owners to benefit from grants, favourable credit terms, and evacuation support upon application to district municipalities. The scheme includes relocation support and credit facilities, the repayment of which commences following issuance of the building permit, thereby facilitating agreements with contractor firms.

According to the Presidency's announcement dated 4 May 2025, the campaign is available until 31 December 2026. No official announcement has yet been made regarding whether the campaign will continue beyond 2026 or whether alternative mechanisms will be introduced.

Conclusion

In light of the foregoing legal and administrative framework, urban transformation in Türkiye has evolved from isolated, project-based implementations into an institutionalized and continuous field of activity. The long-standing implementation practice demonstrates that the administration has established a structure that both accelerates transformation and secures it through legislative amendments and incentive mechanisms.

For investors, developers, and practitioners operating particularly in major metropolitan areas, mastering not only the technical aspects of projects but also the underlying legal infrastructure, administrative processes, and practical implementation dynamics has become a key determinant of project success and effective risk management.

The impact of the Law is observable not only at the normative level but also through concrete data. To date, 1,306,702 independent units have been designated as risky buildings, and 1,106,211 independent units have been physically demolished and incorporated into the transformation process. These figures indicate that the transition from risky building determination to project implementation has in large part been carried out successfully and efficiently.

Furthermore, the fact that 19 banks have signed protocol agreements with the Ministry in relation to urban transformation credit schemes and interest-supported housing loans demonstrates that an institutional financing framework has been established, thereby enhancing predictability for investors.

Footnote

1. This assessment is based on sectoral experience obtained by legal practitioners and technical consultants and is provided for general informational purposes only; no official statistics on this matter are publicly available.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.