Which Buildings and Neighborhoods Qualify for Urban Renewal in Turkey

In Türkiye, urban renewal is known as Kentsel Dönüşüm.

This is not a building renovation, façade upgrade, or cosmetic improvement. It is a legal process governed by Law No. 6306, under which a building or area is officially identified as being at risk from natural disasters.

For property owners, urban renewal may eventually result in receiving a new property instead of an old one.

However, it is important to understand that this is not a simple exchange of “100 m² old apartment for 100 m² new apartment.”

The calculation is based on:

• Land share

• Value of the previous ownership right

• Parameters of the new project

• Terms of the development agreement

As a result, an apartment in a building expected to undergo urban renewal is not automatically a winning investment.

Sometimes it can be an excellent opportunity.

Other times it may involve:

• Demolition

• Additional payments

• Loss of rental income

• Several years of waiting

What Qualifies as Urban Renewal?

There are three main categories within the urban renewal system.

1. Risky Building (Riskli Yapı)

A building may be classified as risky if a technical assessment determines that it poses a structural danger.

Age alone does not determine the outcome.

An older building may pass inspection, while a newer one may be declared risky because of:

• Foundation problems

• Structural weaknesses

• Construction quality issues

2. Risky Area (Riskli Alan)

This classification applies to an entire neighborhood, district, or group of parcels.

The reasons may include:

• Soil conditions

• Urban planning issues

• Widespread construction violations

• Large numbers of unsafe buildings

Technical reports, maps, and land documentation are prepared before such areas receive official status.

3. Reserve Area (Rezerv Yapı Alanı)

A reserve area is designated for:

• Urban renewal projects

• New housing development

• Relocation of residents from unsafe buildings

If a private owner requests reserve-area status, they may be required to:

• Transfer 30% of the buildable area to the state

or

• Pay the equivalent value into a special urban renewal fund

How a Building Becomes a Risky Building

The inspection is carried out by licensed organizations.

The assessment may be requested by:

• One owner

• Several owners

• An authorized representative

Importantly, approval from all owners is not required to start the process.

If owners take no action, government authorities may initiate the assessment themselves.

Costs are generally allocated among owners according to their ownership shares.

After the Inspection

If the building is classified as risky:

• The status is officially recorded

• Owners are notified

• A legal objection period begins

Owners have:

15 Days

to challenge the classification after receiving official notification.

A technical commission reviews objections.

If the commission confirms the risk assessment, the demolition procedure continues.

How a Neighborhood Becomes a Risky Area

A neighborhood, district, or collection of parcels may be declared a risky area if conditions threaten life and property.

One important indicator exists within the regulations:

A district may qualify if at least:

65%

of its structures violate building regulations or were originally constructed without proper permits before later receiving legalization.

Who Initiates and Conducts Urban Renewal?

The process can begin through:

• Property owners

• Municipalities

• Government agencies

• TOKİ

• Kentsel Dönüşüm Başkanlığı (Urban Transformation Authority)

Even a single owner may trigger the inspection process.

If the building is declared risky, all owners become part of the procedure—including those who opposed it.

Construction of the replacement building may be handled by:

• Private developers

• Municipal companies

• Government entities

• Contractors selected by owners

A common model involves a developer constructing a new building in exchange for:

• Apartments

• Commercial units

• Future project value

How Decisions Are Made

After a building receives risky status, decisions are made according to:

Land Share Ownership

The calculation is based on ownership shares—not the number of apartments or people.

Example:

A building contains 20 apartments.

Nine owners holding 51% of the land share may approve the project.

The remaining eleven owners may oppose it, but their combined 49% is insufficient to stop the process.

The reverse can also happen:

Most owners support a proposal, but if they hold less than half of the ownership shares, the required majority does not exist.

Owners' Meetings

Since 4 February 2026, meeting procedures have become more formal.

A single owner can request a meeting.

Notification is provided through:

• Local administrative offices

• Building entrances

• Official notice boards

The announcement remains posted for:

15 Days

After that period, owners are considered officially notified.

The meeting proceeds if attending owners represent the required ownership majority.

Decisions may include:

• New construction approval

• Developer selection

• Sale of dissenting shares

• Land-use arrangements

What Happens to an Owner Who Disagrees?

An individual owner cannot stop the entire project simply by saying:

"I refuse."

After the majority approves the project, dissenting owners receive:

15 Days

to accept the agreed terms.

If they refuse, their ownership share may be offered for sale.

Legal disputes generally focus on procedural violations such as:

• Incorrect notifications

• Share calculation errors

• Valuation disputes

• Improper meeting records

rather than opposition to the renewal itself.

Sale of Dissenting Shares

If the first sale attempt fails:

• Government authorities may purchase the share in certain projects

• Approved third parties may sometimes be allowed to purchase it

Third-party bidders must provide:

10% Deposit

based on the market value of the share.

Successful bidders then have:

7 Days

to complete payment and sign documentation.

Failure to do so may result in forfeiture of the deposit.

Demolition

Once the risky-building status becomes final, owners receive a deadline to vacate and demolish the building.

Maximum period:

90 Days

If owners fail to comply:

• Utilities may be disconnected

• Forced evacuation may occur

• Demolition may proceed through authorized agencies

The costs can ultimately be charged back to owners.

For rental property investors, this is particularly important.

Rental income often stops long before the new building is completed.

How New Apartment Sizes Are Calculated

There is no legal principle of:

"Square Meter for Square Meter"

Owning a 100 m² apartment does not guarantee receiving a new 100 m² apartment.

The calculation depends on:

• Land share

• Previous ownership value

• Permitted construction density

• Developer share

• Project agreements

Example

An owner has a 120 m² apartment.

During redevelopment:

• The developer receives part of the project

• Common areas occupy space

• Elevators, staircases, and technical areas reduce usable area

If the value of the new apartment exceeds the value of the previous ownership right, the owner may be offered:

• A smaller apartment without additional payment

or

• A similar-sized apartment with additional payment

In strong projects with:

• Valuable land

• Favorable zoning

• Profitable construction economics

owners may receive comparable apartments without significant extra cost.

However, this results from project economics—not from legal entitlement.

Who Pays for Urban Renewal?

The initial risky-building assessment is typically paid for by owners.

If authorities initiate the assessment, costs may still be recovered from owners according to their shares.

New Construction

Funding depends on the project structure.

In private developments, developers often receive a portion of the future project value rather than direct payment.

Where project economics are weak, owners may face:

• Smaller replacement units

• Additional payments

• Less favorable terms

Government-backed projects may use valuation systems comparing:

• Existing ownership value

• Value of the new property

Any difference may become payable by the owner.

Rental Assistance and Financial Support

Owners displaced by urban renewal may apply for rental assistance.

Individual Risky Building

Maximum support period:

18 Months

Risky Areas or Reserve Areas

Support duration is determined by authorities but cannot exceed:

48 Months

Applications must generally be submitted within:

1 Year

of eviction or demolition.

Missing this deadline may result in loss of eligibility.

Advance Payments

If funding is available, assistance may be paid in advance.

Maximum advance period:

12 Months

Important Restriction

Owners cannot simultaneously receive:

• Rental assistance

and

• Interest-subsidized renovation loans

A choice must be made.

Loan Applications

Applications for subsidized financing must generally be submitted within:

3 Years

of demolition or evacuation.

Assistance for Tenants

Tenants do not receive replacement apartments because they do not own land shares.

However, tenants may receive limited support.

Residential tenants, commercial occupants, and certain users may qualify for:

Two Monthly Assistance Payments

Some categories, including building caretakers living in service apartments, may receive:

Five Monthly Payments

depending on their legal status.

Tax and Fee Exemptions

Urban renewal projects may qualify for exemptions from certain:

• Taxes

• Fees

• Municipal charges

These exemptions only apply under specific legal conditions.

Size Limitation

Municipal exemptions generally apply to new construction up to:

1.5 Times

the previous construction area.

Example:

Old building:

1,000 m²

Maximum exempt new area:

1,500 m²

Any additional construction may be subject to separate charges.

Important Considerations for Foreign Owners

Foreign owners face the same property risks as Turkish citizens.

The biggest difference is often missed deadlines.

An owner living abroad may not:

• See building notices

• Monitor government systems

• Speak with neighbors

Meanwhile:

• Meetings occur

• Notices expire

• Objection periods pass

Most documents are issued in Turkish.

These may include:

• Technical reports

• Meeting minutes

• Contracts

• Calculations

• Official notices

Nothing should be signed without proper translation and review.

Owners who do not reside in Türkiye should strongly consider appointing a representative.

A power of attorney should permit:

• Receiving notices

• Participating in procedures

without granting unnecessary authority to sell property.

What Happens to a Residence Permit?

If a foreigner obtained a residence permit through property ownership, urban renewal does not automatically cancel it.

The challenge often arises during renewal.

Immigration authorities consider:

• Ownership rights

• The actual residential address

Once the building is demolished:

• The apartment physically disappears

• Ownership remains tied to land share and future rights

but the original residential address no longer exists.

After leaving the building, owners must register a new address.

Address changes generally must be reported within:

20 Working Days

to:

• Immigration authorities

• Population registration offices

Failure to do so may create difficulties during residence permit renewal.

Mortgages and Encumbrances

Urban renewal does not erase:

• Mortgages

• Seizures

• Court disputes

• Other encumbrances

After demolition, ownership shifts from a physical apartment to:

• Land share

• Participation rights within the project

However, third-party claims may continue to exist.

Before purchasing older property, buyers should always review:

• Land registry records

• Mortgages

• Legal proceedings

• Developer obligations

Conclusion

Not every old building qualifies for urban renewal.

An official classification is required:

• Risky Building

• Risky Area

• Reserve Area

The entire system revolves around:

• Ownership shares

• Legal deadlines

Decisions are made by owners holding the required majority of land shares.

Dissenting owners receive:

15 Days

to accept project terms.

Following final approval of risky status, the maximum demolition period is:

90 Days

A 100 m² apartment today does not automatically become a 100 m² apartment tomorrow.

Future ownership is calculated using:

• Land share

• Previous valuation

• Project parameters

• Contract terms

A property expected to undergo urban renewal can be an excellent investment—but only after careful legal and financial review.

Without proper due diligence, buyers may inherit:

• Demolition risk

• Lost rental income

• Additional payments

• Smaller replacement units

• Long construction delays

without any guaranteed outcome.