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”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.