Turkey: The Biggest Construction Site On Earth: Turkey What To Expect From The Urban Regeneration Law

Turkey is a country where earthquakes are a part of our lives. The two major earthquakes --the first one in 1999, and the latter one in 2011, raised serious public concern about the reliability of the construction legislation and the players in the construction world.

Especially after the 2011 earthquake, the government decided to take firm steps towards the demolishment of illegal/risky buildings and the construction of new ones. In order to implement this idea, an urban regeneration concept was raised and a new law is legislated.

The Law on the Regeneration of Areas under Disaster Risk numbered 6306, or commonly known as the Urban Regeneration Law (the "Law")1 and the Regulation on the Implementation of the Law on the Regeneration of Areas under Disaster Risk ("Regulation")2 are the main piece of legislation regulating this matter. Both the Law and the Regulation are criticized by some public sectors on the grounds that the real intention is not to benefit the public, but rather for political and economic reasons.

In any event, the Law introduces major changes that will have very important effects on the construction and real estate sectors in Turkey. The Ministry of Environment and Urban Planning (the "Ministry") expects approximately 10,000,000 buildings nationwide to fall within the scope of the urban regeneration plan, making Turkey the biggest construction site on earth. This construction-boom will lure both national and foreign investors and will create a boost in the construction and real estate sectors in Turkey.3

The Law specifically focuses on the risk areas that are defined as areas that may cause loss of life or assets. These areas are identified by the Ministry, Housing Development Administration (the "HDA"), or municipalities, by taking the opinions of the Presidency of Management of Disaster and Emergency, and decided by the Council of Ministers upon proposal of the Ministry.

According to the Law, the buildings that are at risk are defined as "buildings within or outside risk areas that have completed their economic life, or which are scientifically and technically proven to be at risk of demolition or high damage."

First and foremost, the Law noticeably brings all authorities under one institution -- the Ministry. The Ministry is authorized to expropriate the immovable or exchange them with others; to transfer immovable property rights and zoning rights to other areas; to divide and to allocate shares forming the immovables; and to establish rights in rem on immovables located within the risk areas.

In addition to the above, as a completely new structure, the Ministry is also entitled to convert ownership into securities, provided that it is accepted by the landowners. However, the implementation of such a conversion has not yet been tested.

Who can trigger demolishment and reconstruction?

The implementation of the Law can be triggered either by the landowners or by the officials. The building owners can voluntarily authorize a licensed institution4 to conduct research to detect whether or not their building is at risk and inform the Ministry of such result.

Two-thirds of the shareholders of the immovable property may decide on the unification and division of the parcel over which the immovable property is located, the construction of a new building, and the sale of shares and re-evaluation of the immovable property. The land shares of those who do not comply with any of the aforementioned decisions will be sold to other shareholders through public auction by determining the market values of such shares. If such share sale cannot be completed, these land shares will be registered in the name of the Treasury by paying their market values to such shareholders.

Alternatively, the Ministry may also ask the building owners to have research conducted to understand whether or not the building may be classified as a property at risk. In the event that the building owners fail to do so, the Ministry or the local municipalities are entitled to perform the assessment themselves. The costs and expenses arising out of such assessment must be paid by the landowners. If the landowners fail to do so, a mortgage can be established in favor of the Ministry over the relevant property.

It should be underlined that if the Ministry deems necessary, a building that is not specified as a property at risk may also be subject to regeneration procedures for the purpose of maintaining the integrity of the enforceability of the Law.

If the owners mutually agree to vacate the building, they are given at least 60 days to demolish the building. Temporary housing or workplace and rent benefits will be provided to those who agree to vacate and demolish the building.5

The Law clearly states that if the building at risk is not demolished within the granted time period, the municipality or the Ministry may demolish such property. The relevant land registry will be notified of expenses for such eviction and/or demolition, and the land registry will establish a joint mortgage on the shares of the building owners in favor of the Ministry.

The Law foresees the establishment of a fund for matters including the property risk assessment, and demolishment and re-construction process that is referred to as the regeneration projects fund (the "Fund"). The Fund will be generated from administrative fines collected under the Environment Law, income from the properties sold under the Forestry Law, and a certain amount of the annual net profit of the Provincial Bank (İller Bankası Anonim Şirketi). Furthermore, the Fund will be used as a loan source for the building/project owners for the regeneration process.

There are various ambiguous and grey areas regarding the Law. We believe that these questions will be settled during the implementation phase.

It is likely that the Law will be subject to possible objections and annulment actions due to the restrictions imposed on the ownership rights and the granting of broad authority to the Ministry.

Nevertheless, it may be deduced that collection of the authority under one single institution (i.e. the Ministry) may benefit the acceleration of the envisaged regeneration procedures and process. The Law also states that the announcement periods and restrictions provided under Zoning Law No. 3194, and other legislation regarding zoning, shall not be applicable to zoning plans that are prepared in accordance with the Law, which is also a solid indication of the lawmaker trying to limit the formalities and to accelerate the process.

The Law will definitely benefit the construction and real estate sectors in Turkey. According to the Turkish Statistics Institute, there was an approximately 50% decline in the growth rate in the construction sector for the years 2008 and 2009, notably due to the economic crisis. However, sharp growth was experienced in 2010, with a nearly 200% increase in growth. Although the growth rate of 2011 was slightly lower than the previous year, it is likely that if the Law is enacted and the regeneration plan is promptly established, another sharp growth will be experienced in the sector.


1 The Law on the Regeneration of Areas under Disaster Risk numbered 6306, Official Gazette dated 31 May 2012 and numbered 28309.

2 The Regulation on the Implementation of the Law Regeneration of Areas under Disaster Risk, Official Gazette dated 4 August 2012 and numbered 28374.

3 The Urban Regeneration has been started on 5 October 2012 with the demoslishment of certain buildings in Esenler Havalimanı district in Istanbul.

4 Pursuant to the Regulation, the licensed institution are universities, civil, geology and geophysics engineering chambers and building audit firms and other institutions providing architecture and engineering services. A list of licensed institutions may be found under the website of the Ministry: http://www.csb.gov.tr/gm/altyapi/index.php?Sayfa=iller

5 The conditions for temporary housing or workplace and rent beneficts are determined under the Regulation.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Sign Up
Gain free access to lawyers expertise from more than 250 countries.
Email Address
Company Name
Confirm Password
Mondaq Newsalert
Select Topics
Select Regions
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions