1. What is urban transformation?
Urban transformation is the process of renewing building stock that carries earthquake and disaster risk, has completed its economic life, or is unsound, in line with current engineering and urban-planning principles. Because Turkey lies on an active seismic belt, replacing old buildings that received no engineering service with safe structures is critical for the safety of life and property.
The principal aims of the process are:
- Reducing earthquake risk: preventing loss of life by clearing buildings that carry a collapse risk.
- Renewing unsound building stock: converting unpermitted, illegal or low-quality structures into planned and safe buildings.
- Modern urbanism: raising quality of life with infrastructure, green areas, parking and social amenities.
2. Legal framework
Urban transformation runs on several complementary laws and regulations:
Law No. 6306 (2012)
Its full title is the "Law on the Transformation of Areas Under Disaster Risk (Afet Riski Altındaki Alanların Dönüştürülmesi Hakkında Kanun)". It is the principal legal basis for urban transformation; it regulates the concepts of risky building, risky area and reserve building area, and the essentials of the transformation process.
Zoning Law No. 3194 (İmar Kanunu)
The fundamental law that governs settlement and construction so they conform to planning, technical, health and environmental conditions. It frames matters such as zoning plans, parcelization (for example the application of Article 18), permits and occupancy permits.
Law No. 7471 (2023 amendments)
The regulation that made significant amendments to Law No. 6306 in 2023. It introduced updates on decision majority, agreement procedures and the acceleration of the process. For this reason, some ratios and procedures found in older sources may have changed.
Urban Transformation Department
Within the Ministry of Environment, Urbanisation and Climate Change, this is the body that plans, carries out and coordinates urban transformation processes. It plays a central role in the declaration of risky areas, transformation projects and support programmes.
3. Core zoning concepts
To read transformation and investment decisions correctly, you need to understand the following zoning concepts:
- Zoning plan (master / implementation)
- The master zoning plan (nazım imar planı) is the upper-scale plan that sets land-use decisions and density at the regional level. The implementation zoning plan (uygulama imar planı) is the lower-scale plan that, in line with the master plan, defines building conditions on a parcel basis (roads, blocks, parcels, use).
- KAKS — floor area ratio (FAR / Emsal)
- The floor area ratio (Kat Alanı Katsayısı, KAKS) is the ratio of the total constructible building area on a parcel to the land area. For example, with a FAR of 1.50, a 1,000 m² plot carries a 1,500 m² construction right. It is the key determinant of saleable/usable area.
- TAKS — ground coverage ratio
- The ground coverage ratio (Taban Alanı Katsayısı, TAKS) is the ratio of the building's ground-floor footprint to the land area. It limits how much of the parcel may be covered by the building, and therefore the proportion of garden/open space.
- Setback (building approach distance / çekme)
- The minimum distance a building must leave from neighboring parcel boundaries, the road and other structures. It is defined in the zoning plan and regulation and directly affects how the building is positioned.
- Subdivision and consolidation (ifraz / tevhid)
- Subdivision (ifraz) is the division of one parcel into several parcels; consolidation (tevhid) is the merging of several parcels into a single parcel. These are the fundamental operations of parcel arrangement in zoning applications.
- Parcelization (parselasyon)
- The process of arranging land in line with the zoning plan — together with its roads, green areas and amenities — and converting it into zoning parcels (the application under Article 18 of Law No. 3194 falls within this scope).
- Zoning status certificate (imar durumu belgesi / imar çapı)
- An official document obtained from the municipality showing a parcel's building conditions (use, KAKS/FAR, TAKS, height, setback distances) under the zoning plan in force.
- Building permit and occupancy permit (yapı ruhsatı / iskan)
- The building permit (yapı ruhsatı) is the authorization obtained to start construction. The occupancy permit (yapı kullanma izni / iskan) is the document certifying that the completed building conforms to its permit and project, and that formally opens it to use.
4. Risky building, risky area and reserve building area
Law No. 6306 distinguishes three core concepts from one another:
Risky building
An individually assessed building that carries, or is likely to carry, a risk of collapse.
Risky area
A region that, due to ground or structural conditions, carries a risk of loss of life/property and is declared by Presidential decision.
Reserve building area
Land designated for new settlement/relocation during the transformation process.
How is a risky-building assessment carried out?
- Application: the owner or legal representative applies to a licensed organization with the required documents (title deed, ID).
- Assessment: an institution/organization licensed by the Ministry determines, through on-site inspection and a technical report, whether the building is risky.
- Notification and annotation: a building found to be risky is notified to the administration, an annotation is recorded on the land registry, and owners are served notice.
- Objection: owners have a right to object to the technical board within the period set out in the legislation from the date of notice.
5. Step-by-step process
From assessment to delivery, urban transformation generally follows these steps:
- 1
Assessment
Upon application by the owner or legal representative, institutions/organizations licensed by the Ministry determine whether the building is risky.
- 2
Notification
The risky-building finding is notified to the relevant administration (Urban Transformation Department / municipality), a risky-building annotation is recorded on the land registry, and owners are served notice.
- 3
Owner decision & agreement
Owners are expected to decide on evacuation/demolition and reconstruction by the majority set out in the legislation, and to reach agreement on a contract with a contractor or on building by their own means.
- 4
Evacuation & demolition
The risky building is evacuated and demolished by the owners within the periods granted by the legislation; if this is not done within the period, an administrative process may be triggered.
- 5
New project & construction
A building permit is obtained for the approved project and a new, safe building is constructed. At this stage, zoning rights, phasing and the distribution of rights holdings are decisive.
- 6
Delivery
Once construction is complete, the occupancy permit (iskan) is obtained, the independent units are delivered to the rights holders, and condominium ownership is established.
6. Owner rights & majority decision
In urban transformation, agreement among owners is essential. However, the process does not require the unanimity of all owners; a decision can be taken by the majority set out in the legislation.
- Majority rule: a decision taken by owners holding the majority of land shares is binding. Because the ratios for the decision majority changed with the 2023 regulations (Law No. 7471), the current legislation should be consulted for the exact percentage.
- Non-consenting owner: the shares of owners who do not join the decision taken by the majority may be processed under the procedures provided in the legislation (including valuation and sale processes).
- CMB-licensed valuation: to ensure fairness in rights holding and sharing, the valuation carried out by independent real-estate appraisal organizations licensed by the Capital Markets Board (SPK) is taken as the basis.
Because, in practice, the majority ratio, the procedures regarding non-consenting owners and the time periods may change, the current regulations of the Urban Transformation Department and legal advice should be relied upon in any specific situation to avoid loss of rights.
7. State support
Within the scope of urban transformation, the following support may generally be provided to rights holders:
Rent assistance
After the building is evacuated, rent support may be provided to rights holders during the transformation period.
Interest support / loan
Interest-supported loan facilities may be offered for reconstruction.
Tax / fee exemptions
Certain tax, fee and stamp-duty exemptions may apply to transactions within the scope of transformation.
8. What citizens should watch for
To avoid loss of rights, pay particular attention to the following points:
Contractor agreement
Draw up the construction contract in return for floor space (arsa payı karşılığı / flat-for-land) before a notary; clearly set out the delivery period, late-delivery penalty, sharing ratio, quality/specifications, security and termination conditions.
Flat-for-land / revenue sharing
Define from the outset whether it is a flat/m²-for-land model or sharing of sales revenue, which independent units go to whom, and how value differences are handled.
Title deed and mortgage check
Check the land's title registry, any mortgages/liens/annotations on it, and the share to be transferred to the contractor; consider having the contract annotated on the title registry.
Strengthening or demolition?
Not every risky building must be demolished; according to the technical report, strengthening (retrofitting) may be possible. Obtain an engineering assessment in terms of cost, time and safety.
Earthquake insurance (DASK)
Keep the Compulsory Earthquake Insurance (DASK) current and valid; renew the policy when the new building is delivered as well. DASK does not replace urban transformation but complements protection against earthquake risk.
9. Frequently asked questions
What is urban transformation and what is its purpose?
Urban transformation is the process of renewing building stock that carries earthquake and disaster risk, has completed its economic life, or is unsound, with safe structures built in line with modern engineering and urban-planning principles. The core aim is to ensure safety of life, remove risky buildings and raise quality of life.
Which law is the legal basis for urban transformation?
The principal basis is Law No. 6306 of 2012 on the Transformation of Areas Under Disaster Risk (Afet Riski Altındaki Alanların Dönüştürülmesi Hakkında Kanun). Alongside it, the Zoning Law No. 3194 (İmar Kanunu) governs zoning order, and the 2023 amendments introduced by Law No. 7471 frame the process in its current form. The application is carried out by the Urban Transformation Department.
How is a risky-building assessment carried out?
A risky-building assessment is carried out, upon application by the owner or legal representative, by institutions and organizations licensed by the Ministry of Environment, Urbanisation and Climate Change. The result is notified to the administration, an annotation is recorded on the land registry, and owners are served notice; owners have a right to object within the period set out in the legislation.
What is the difference between a risky building, a risky area and a reserve building area?
A risky building is an individually assessed structure that carries a risk of collapse. A risky area is a region that, due to ground/structural conditions, carries a risk of loss of life and property and is declared by Presidential decision. A reserve building area is land designated for new settlement during the transformation process.
Is the approval of all owners required for a decision in urban transformation?
No; a decision can be taken by the majority set out in the legislation. The majority ratio and the procedures regarding non-consenting owners were updated by the 2023 regulations; for the exact ratio and the way it operates, the current legislation of the Urban Transformation Department and professional advice should therefore be relied upon.
What state support is available in urban transformation?
Generally, rent assistance, interest-supported loans and certain tax and fee exemptions are provided. However, since figures such as the rent-assistance amount and interest rate are determined annually by the Urban Transformation Department and may change, official sources should be consulted for current amounts and rates.
What do KAKS (FAR) and TAKS mean?
KAKS (the floor area ratio, FAR / Emsal) is the ratio of the total constructible area on a parcel to the land area, and it determines the saleable area. TAKS (the ground coverage ratio) is the ratio of the building's ground-floor footprint to the land area, and it limits the area the building covers on the parcel.
What should I watch for when signing a flat-for-land contract with a contractor?
Draw up the contract before a notary; clearly set out the sharing ratio, which independent unit goes to whom, the delivery period, the late-delivery penalty, the technical specifications, the security and the termination conditions. Check the title registry and any mortgage/lien status, and consider having the contract annotated on the title registry.
Legal disclaimer
This content is for general information only and does not constitute legal or technical advice. Legislation may change; for the current situation, official sources (Ministry of Environment, Urbanisation and Climate Change / Urban Transformation Department) and professional advice should be relied upon.