New Regulation On The Value Increase Share In Zoning Plan Amendments

The Regulation on the Implementation of the Value Increase Share Regarding Zoning Plan Amendments ("Regulation"), prepared by the Ministry of Environment, Urbanization and Climate Change ("Ministry") and stipulating that 90% of the value increase arising from zoning plan amendments shall be transferred to the public, was published in the Official Gazette dated 22.11.2025 and numbered 33085, and entered into force on the same date. The Regulation clearly and systematically sets out the procedures and principles governing the transfer to the public of the value increase arising in immovable properties as a result of implementation zoning plan amendments approved upon the request of all property owners.

Within the scope of the Regulation, the end-to- end process is comprehensively addressed, covering the application procedure, the determination of value, the work carried out by the Appraisal Commission, as well as the determination, finalization, and payment of the value increase share.

The value increase share becomes applicable where a qualifying implementation zoning plan amendment results in an increase in value due to (i) an increase in population/building density, number of storeys or building height on the relevant parcel, or (ii) a parcel-based change in the land-use/function designation (excluding residential use). Accordingly, the mechanism is triggered where the requested amendment expands development rights, such as by increasing the permitted floor area (sqm), height or building footprint (ground coverage) of the proposed building.

The rule contained in the first sentence of the fourth paragraph of Additional Article 8 of the Zoning Law No. 3194, which – through the wording "...the entire increased value..." – provided for the collection of the entire value increase arising from a zoning plan amendment, was annulled by the Constitutional Court with its decision dated 18/5/2023 and numbered E.2020/42, K.2023/99, on the grounds that collecting the entire value increase violates the right to property. Following this decision, an amendment was made to Additional Article 8 of Law No. 3194, adopting the principle that 90% of the value increase arising in immovable property as a result of an implementation zoning plan amendment shall be transferred to the public as the value increase share; the detailed procedures and principles for implementation are further set out under this Regulation.

In zoning plan amendments subject to the value increase share, the mechanism is triggered where a value increase arises on the parcel due to parcel-based functional changes based on request, such as an increase in square meters or density (as listed in Article 6 of the Regulation).

In this context, the value increase share is applied in plan amendment requests aimed at expanding development rights, including requests to increase (i) the total construction area of the new building, (ii) the building height, or (iii) the building footprint (ground coverage).

Under Law No. 3194 and the Regulation, "residential use" is, as a rule, excluded from the scope of parcel-based functional changes.

However, where the effective implementation zoning plan for a parcel already includes residential use (i.e., the parcel is subject to one or more land-use designations that include residential), it is permissible to introduce mixed-use designations – such as commercial + residential, tourism + residential, or commercial + tourism + residential – provided that the amendment does not increase the pre-amendment population, development intensity/building density, or the permitted number of storeys/building height. Plan amendments made on this basis are subject to the value increase share.

With regard to the value increase share, the Regulation provides that no value increase share shall be levied in respect of plan amendments that result in an increase of up to 20% in the FAR-based (floor area ratio–based) construction area permitted under the applicable plans and plan notes for (i) parcels located within risky areas or reserve building areas within the scope of Law No. 6306, or (ii) parcels in respect of which a risky building determination has been made. In addition, where a parcel containing a risky building is consolidated, through land readjustment, with parcels not containing risky buildings, no value increase share may be assessed in respect of the areas originating from the risky-building parcel, to the extent such areas fall within the scope of the exemption. The value increase share is determined on the basis of per-square-metre value increase reports to be obtained from at least two separate licensed valuation firms authorized under the Capital Markets Law. The Appraisal Commission determines the value increase in an amount not lower than the arithmetic average of the values stated in those valuation reports. Following the approval of the plan amendment and prior to the commencement of the public posting (askı) process, the value increase share is finalized; at that stage, the relevant parties may submit objections to the assessed amount and/or notify their preference for lump-sum or instalment payment. The Regulation further provides for the right to administratively challenge decisions taken in relation to the value increase share.

The value increase share is calculated solely on the increase in the land value; the value of any existing buildings/structures, facilities, improvements, attachments and appurtenances on the immovable property (including muhdesat) is excluded from the calculation. In this context, a 10% discount applies where the value increase share is paid in a lump sum, while property owners may alternatively benefit from an instalment payment option.

Under the new framework, an additional solution mechanism has also been introduced for immovable properties falling within the scope of Additional Article 1 of the Expropriation Law No. 2942, aimed at lifting restrictions applicable to areas designated for public services.

Accordingly, for privately owned immovable properties that were previously designated as public service areas (e.g., official institutions, administrative facilities, schools, or healthcare facilities) but for which transfer into public ownership has not been realized, a plan amendment removing such restriction (excluding residential use) may be made, provided that (i) the relevant public institution no longer requires the area (subject to the favourable opinion of the administration responsible for the relevant public service), and (ii) approval is granted by the competent authority. It is expressly stipulated that no value increase share shall be levied for plan amendments falling within this scope. The stated purpose is to lift restrictions on property rights, address citizens' grievances, and reduce disputes between the administration and property owners.

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.