Kategori: Real Estate Law

Urban transformation has become an increasingly important issue for property owners in Türkiye, particularly in regions exposed to earthquake risks. Beyond ensuring structural safety, the urban transformation process raises significant legal questions concerning property rights, ownership interests, construction agreements and the protection of individual owners.

Urban transformation is not simply a matter of demolishing an existing building and constructing a new one. It involves several legal and technical stages, including the assessment of potentially unsafe buildings, decisions among property owners, the selection of construction contractors and the determination of each owner’s rights in the newly constructed property.

How does urban transformation begin in Türkiye? Is the consent of every property owner required? What happens if an owner refuses to participate? Can a risky building assessment be challenged before an administrative court?

In this article, we examine the urban transformation process under Law No. 6306 on the Transformation of Areas Under Disaster Risk and explain the principal legal issues that property owners should consider.

1. What Is Urban Transformation?

Urban transformation refers to a range of measures aimed at improving, renewing or reconstructing buildings and urban areas that are exposed to disaster risks, have reached the end of their economic lifespan or no longer meet appropriate safety standards.

In Türkiye, the principal legal framework governing urban transformation is Law No. 6306 on the Transformation of Areas Under Disaster Risk.

The Law distinguishes between three important concepts:

• Risky Building: A structure that has reached the end of its economic lifespan or has been determined, on the basis of scientific and technical evidence, to be at risk of collapse or severe structural damage.
• Risky Area: An area considered to pose a risk to life and property due to its ground conditions or existing building stock.
• Reserve Building Area: An area designated for implementation of transformation projects under Law No. 6306.

An entire neighborhood does not necessarily need to be declared a risky area for urban transformation to begin.

The designation of an individual building as a risky building may be sufficient to initiate the transformation procedures provided for under Law No. 6306.

2. How Does the Urban Transformation Process Begin?

The urban transformation process generally begins with an assessment of the existing building’s structural condition and potential risks.

A property owner who has concerns about a building’s earthquake resistance may apply to an institution or organization licensed by the Urban Transformation Presidency (Kentsel Dönüşüm Başkanlığı) to request a risky building assessment.

Following the assessment, a technical report is prepared and submitted to the competent authority.

If the building is determined to be risky and the assessment is approved, the relevant administrative procedures are initiated, including the registration of the risky building designation in the land registry.

Once the risky building determination becomes final, the evacuation and demolition procedures may proceed in accordance with applicable legislation.

Meanwhile, the property owners must address additional matters, including the proposed reconstruction project, the appointment of a construction contractor and the terms of the relevant agreements.

3. Why Should Property Owners Obtain an SPK-Authorized Valuation Report Before Urban Transformation?

One of the most significant mistakes property owners can make during urban transformation is entering negotiations with construction contractors without first establishing the value of their existing property.

Before negotiating a redevelopment agreement, property owners should consider obtaining an independent valuation report from a real estate valuation company authorized by the Capital Markets Board of Türkiye (SPK).

An independent valuation report provides a professional assessment of a property’s economic value based on several factors, including its location, physical condition, zoning status, ownership share and comparable property values.

What Are the Benefits of a Property Valuation Report?

An independent valuation report enables owners to gain a clearer understanding of the economic value of their existing property before making decisions about redevelopment.

It may also provide an important basis for evaluating proposals submitted by construction companies.

During urban transformation, property owners should not focus solely on the size or appearance of the proposed new apartments. The economic value of the new independent units, their location within the building, their characteristics and the proposed distribution among owners should also be examined.

For example, two apartments of identical size may have substantially different market values depending on their floor, orientation, view or other characteristics.

In addition to assessing the existing property, examining the land’s development rights, applicable zoning regulations and the potential economic value of the proposed construction project can help owners compare redevelopment offers more effectively.

Obtaining a professional valuation before beginning negotiations with construction contractors may therefore strengthen property owners’ negotiating position and help protect their economic interests.

Nevertheless, a valuation report alone does not guarantee the most financially advantageous agreement.

Construction costs, zoning rights, land shares, differences in the values of the proposed independent units and contractual obligations must all be considered together.

Although obtaining an SPK-authorized valuation report is not generally a mandatory prerequisite for every urban transformation project, it is an important preparatory measure for property owners seeking to make informed decisions.

4. Can One Property Owner Request a Concrete Core Test Without the Consent of Others?

A frequently asked question concerns whether a single apartment owner can initiate a risky building assessment without obtaining consent from the other property owners.

Under Law No. 6306, an application submitted by one property owner may be sufficient to initiate a risky building assessment.

Therefore, unanimous consent or approval by a majority of apartment owners is not required merely to request the assessment.

For example, in a building containing 12 independent units, an eligible property owner may independently apply for a risky building assessment.

The procedure commonly referred to in Türkiye as a karot testi involves taking concrete core samples from the building.

However, the legal and technical process of determining whether a building is risky is not necessarily limited to concrete core sampling. It must be conducted in accordance with the applicable technical standards.

Importantly, initiating a risky building assessment and approving the reconstruction of the building are two separate legal matters.

5. What Majority Is Required for Urban Transformation in Türkiye?

Disagreements among apartment owners frequently arise during the reconstruction stage.

Under the current provisions of Law No. 6306, decisions concerning redevelopment may be adopted by an absolute majority of the ownership shares in the relevant circumstances.

An absolute majority means more than half of the total ownership shares.

For example, where 10 property owners hold equal land shares, the approval of six owners may be sufficient.

However, if the owners hold unequal land shares, simply counting the number of owners who approve a proposal would not be sufficient. Their respective ownership shares must also be considered.

Subject to the requirements of the applicable legislation, decisions adopted by the required majority may concern reconstruction, construction agreements in exchange for land shares and other redevelopment arrangements.

It is particularly important to note that the former two-thirds majority requirement has been amended, and the current framework provides for an absolute majority calculated according to ownership shares.

6. What Happens If a Property Owner Opposes Urban Transformation?

It is common for property owners within the same building to disagree about redevelopment.

Some may object to the selection of a particular construction contractor, the proposed architectural project, the distribution of the new apartments or the financial obligations set out in the construction agreement.

However, the objection of an individual property owner does not automatically prevent an urban transformation project from proceeding under Law No. 6306.

Where a decision is validly adopted by the required majority, the decision and relevant contractual conditions must be communicated to owners who have not joined the agreement in accordance with the applicable legal procedures.

If those owners fail to accept the agreement within the prescribed period, the sale of their land shares through the statutory auction procedure may become possible.

Nevertheless, a majority decision does not eliminate all legal rights of dissenting owners.

The procedures relating to decision-making, notification, valuation and the sale of ownership shares remain subject to legal review.

Property owners who disagree with a redevelopment decision should therefore carefully examine the proposed agreements, notifications and the legal basis of the relevant procedures before deciding how to proceed.

7. Can Property Owners Lose Their Property During Urban Transformation?

One of the main concerns among apartment owners is whether they may lose their property rights during the urban transformation process.

The designation of a building as risky does not, by itself, automatically terminate an owner’s property rights.

However, disagreements arising during redevelopment may have significant legal consequences.

In particular, where the statutory conditions are met, the land shares of owners who refuse to participate in a decision adopted by the required majority may become subject to sale.

The allocation of independent units in the new building should also be clearly addressed in the reconstruction agreement.

The agreement should specify which apartments will be allocated to each owner, their respective dimensions and characteristics, and whether additional financial contributions will be required.

Owning a particular apartment in the existing building does not necessarily guarantee that the owner will receive an apartment of the same size, on the same floor or with the same orientation in the reconstructed building.

For this reason, property owners should examine not only the square meter area of their proposed apartment but also their land shares, the apartment’s location, its economic value and their contractual rights.

8. Can a Risky Building Decision Be Challenged? What Is the Deadline for Filing a Lawsuit?

Property owners have the right to challenge a risky building assessment under Law No. 6306.

The risky building determination is notified through the procedures prescribed by law, which include posting the relevant notice at the building, electronic notification through the e-Devlet system and publication at the relevant neighborhood headman’s office (muhtarlık) for 15 days.

An objection to the risky building assessment may be submitted within 15 days following the final day of the announcement at the neighborhood headman’s office.

The objection must be submitted to the competent Urban Transformation Directorate or the relevant authority where such powers have been delegated.

Following the objection, the assessment report is reviewed by a technical committee, which may include university academics and technical specialists.

What Happens If the Objection Is Rejected?

If the technical committee rejects the objection, property owners who consider the administrative decision unlawful may bring an action for annulment before the competent administrative court.

Pursuant to Article 6(9) of Law No. 6306, the statutory period for bringing an action against administrative decisions adopted under the Law is 30 days.

Where an administrative objection has been submitted, the calculation of the litigation deadline requires consideration of the notification date of the original decision, the date of the objection and the notification of the decision rejecting that objection.

The rejection of an administrative objection does not necessarily mean that an entirely new and independent 30-day filing period automatically begins.

An administrative objection is not always a mandatory prerequisite to judicial proceedings. Subject to the relevant procedural conditions, it may also be possible to challenge the administrative decision directly before the competent administrative court.

The court may examine the technical assessment report, compliance with the applicable regulations, the adequacy of the assessment and the lawfulness of the administrative decision.

A claimant may also request a stay of execution (yürütmenin durdurulması).

However, filing an annulment action does not automatically suspend the implementation of the risky building decision. A separate judicial order is required to stay its execution.

Property owners should therefore pay particular attention to administrative objection periods and litigation deadlines to avoid losing their legal remedies.

9. How Much Time Is Given to Vacate a Risky Building?

The finalization of a risky building determination does not necessarily mean that the building must be vacated immediately without further administrative procedures.

Under Law No. 6306, a period not exceeding 90 days is provided for evacuation and demolition in accordance with the applicable procedures.

If the building is not vacated or demolished within the prescribed period, the competent administrative authorities may undertake the relevant measures.

The costs of demolition or related administrative measures may also be recovered from property owners in accordance with the statutory conditions.

Property owners and occupants should therefore monitor the applicable evacuation and demolition deadlines once a risky building determination becomes final.

10. What Should Property Owners Consider When Choosing a Construction Contractor?

One of the most important legal stages of urban transformation is the agreement entered into between the property owners and the construction contractor.

In Türkiye, redevelopment projects are frequently carried out through construction agreements in exchange for land shares, commonly known as arsa payı karşılığı inşaat sözleşmesi or kat karşılığı inşaat sözleşmesi.

These agreements may have significant long-term consequences for property ownership and the rights of owners in the newly constructed building.

Before signing an agreement, property owners should carefully consider the following matters:

• Allocation of independent units: The apartments to be allocated to each owner, including floor levels, orientation, location, net and gross floor areas.
• Construction and delivery deadlines: The commencement date, building permit procedures, construction schedule and final delivery date.
• Liability for delays: Contractual penalties, compensation and other remedies if the contractor fails to complete or deliver the building on time.
• Rental payments: The amount, duration and payment conditions of any rental support to be provided by the contractor during construction.
• Financial security and guarantees: The contractor’s financial capacity, statutory security obligations and any additional contractual guarantees.
• Technical specifications: Building materials, construction standards, technical requirements and delivery conditions.
• Termination of the agreement: The circumstances and legal mechanisms through which the agreement may be terminated in the event of contractual breaches.

A construction agreement should be examined carefully before it is signed.

Addressing legal and financial risks during the negotiation stage may help prevent disputes and protect the interests of property owners throughout the redevelopment process.

11. Why Are Land Shares and Property Valuation Differences Important?

One of the most common sources of disagreement during urban transformation concerns the allocation of apartments in the reconstructed building.

Apartments may differ in size, floor level, orientation, view, layout and other characteristics.

These differences may significantly affect their respective market values.

For this reason, the allocation of new independent units may require an assessment of value differences, commonly referred to in Turkish real estate practice as şerefiye.

This concept refers to the evaluation of differences in economic value arising from the individual characteristics of separate units within a building.

However, land shares (arsa payı) and property valuation differences (şerefiye) are legally distinct concepts.

A land share represents the owner’s proportional ownership interest in the underlying land and is directly connected to property rights.

By contrast, şerefiye concerns differences in economic value between individual apartments or other independent units.

Both factors should be carefully considered when negotiating the distribution of units in the reconstructed building.

A comprehensive assessment of land shares and differences in property values may help ensure that the proposed allocation is transparent and that owners understand the economic implications of the redevelopment agreement.

12. Rental Assistance and Relocation Support During Urban Transformation

Financial assistance available to property owners and tenants during urban transformation may vary according to the location of the project, the applicable legislation and the specific support program.

Relocation Support Under the Yarısı Bizden Program in Istanbul

The Yarısı Bizden (Half of It Is on Us) program applies to eligible urban transformation projects in Istanbul’s 39 districts.

Under this program, eligible beneficiaries may receive grants, financing support and a one-time evacuation and relocation payment, subject to the applicable program conditions.

This relocation payment is not a monthly rental allowance. It is a single payment to the eligible beneficiary.

Where an independent unit is occupied by an eligible tenant, the relocation payment may be made to the tenant. Otherwise, it may be payable to the eligible property owner.

Individuals seeking to benefit from the program may apply to the relevant district municipality following the required risky building assessment and redevelopment procedures.

A separate preliminary application through the e-Devlet portal is not required for this program.

Rental Assistance Under Law No. 6306

In urban transformation projects carried out under Law No. 6306, eligible property owners may receive monthly rental assistance, subject to the applicable requirements.

For risky buildings, rental assistance may be provided for a maximum period of 18 months. Different periods may apply to risky areas and reserve building areas.

Eligible tenants may also be entitled to one-time financial assistance.

Applications may be submitted to the competent administrative authorities or through the relevant electronic application channels, depending on the applicable procedures.

The general rental assistance scheme should be distinguished from the financial support specifically available under the Yarısı Bizden program. Eligibility for one program does not automatically establish eligibility for another.

Can Property Owners Request Rental Payments from the Construction Contractor?

Property owners may also negotiate rental payments directly with the construction contractor.

Such payments are separate from government assistance programs.

The contractor’s obligation to provide rental support generally depends on the terms agreed upon between the parties.

Accordingly, a construction agreement should expressly regulate the amount of rent payable, the commencement date, the duration of payments and the consequences of delayed or missed payments.

Owners should not rely exclusively on government support when negotiating their contractual rights.

13. How Are Legal Disputes Related to Urban Transformation Resolved?

Legal disputes arising during urban transformation may concern different areas of law and therefore require different procedural approaches.

Administrative decisions relating to risky building assessments, disputes concerning ownership rights and disagreements arising from construction agreements must be evaluated according to their legal nature.

For example, disputes concerning the lawfulness of an administrative risky building decision may fall within the jurisdiction of administrative courts.

By contrast, contractual disputes arising from construction agreements in exchange for land shares may fall within the jurisdiction of civil courts, depending on the nature of the dispute.

Other potential disputes include incorrectly determined land shares, disagreements concerning the allocation of new apartments, land registry transactions and a contractor’s failure to fulfill contractual obligations.

Each dispute must therefore be assessed in light of the applicable legislation, the relevant documents and the circumstances of the individual case.

14. Frequently Asked Questions About Urban Transformation in Türkiye

Can My Building Undergo Urban Transformation Even If It Appears Structurally Sound?

Whether a building qualifies as risky under Law No. 6306 depends on the relevant technical assessment and statutory requirements. Other urban planning or redevelopment mechanisms may also apply.

Can the Ownership Share of Someone Who Refuses Urban Transformation Be Sold?

Where a decision has been adopted by the legally required majority and the other statutory conditions have been satisfied, the land share of a dissenting owner may become subject to the prescribed sale procedure.

This does not mean that any other owner may freely sell the dissenting owner’s property.

Is Unanimous Consent Required to Demolish a Risky Building?

Once a risky building determination becomes final, the statutory evacuation and demolition procedures do not require a new unanimous decision by all owners.

Can I Challenge a Redevelopment Decision Adopted by the Majority?

The legality of the decision, notification procedures and contractual arrangements may be subject to review depending on the circumstances.

However, simply disagreeing with the decision is not necessarily equivalent to establishing that it is unlawful.

Am I Entitled to Receive an Apartment of the Same Size After Reconstruction?

The size and allocation of new apartments depend on zoning requirements, the approved project, the owners’ agreements and the relevant contractual provisions.

Ownership of an apartment of a particular size in the existing building does not, by itself, guarantee an apartment of identical size in the new building.

15. Conclusion: Protecting Property Rights During Urban Transformation

The primary objective of urban transformation is to reduce disaster risks and create safer living environments.

However, achieving this objective also requires the protection of property rights, lawful decision-making procedures and clearly defined contractual obligations.

From the initial risky building assessment to negotiations among owners, the execution of construction agreements and the eventual delivery of new apartments, each stage may give rise to different legal issues.

A careful assessment of property values, ownership shares, construction proposals and statutory procedures can help property owners understand their rights and responsibilities before making significant decisions.

At Malabega Law & Consultancy, we emphasize the importance of examining disputes arising from urban transformation and real estate law in accordance with the legislation in force and the specific circumstances of each case.

Author: Attorney Nil Ak Evren
Malabega Law & Consultancy

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Individual disputes must be assessed in light of the applicable legislation and relevant documentation.