As Türkiye pushes forward with urban renewal efforts in earthquake-prone regions like Istanbul, revised laws, rent subsidies, and state-backed loans are encouraging residents to embrace transformation. However, while the intent behind these initiatives is to improve housing safety and modernize infrastructure, the execution often faces legal and social friction.
Recent changes to Türkiye’s urban transformation laws have aimed to accelerate the process by reducing the required approval threshold among property owners from two-thirds to a simple majority of 51 percent. Yet this seemingly small change has opened the door to a wave of new challenges and lawsuits.
Transparency and Legal Gray Areas Complicate Progress
According to Nurdoğan Babadağ, Chairperson of Meka Yapı Urban Transformation Project Management and Consulting, the shift to 51 percent approval has indeed made it easier to initiate renewal projects. However, she cautions that this shift can sometimes be misused, especially when that majority is reached through non-transparent negotiations or promises made under pressure.
“In cases where the majority is used with good faith and transparency, the project proceeds smoothly,” Babadağ explained. “But in situations where the rights of the remaining 49 percent are overlooked or undermined, this leads to legal disputes.”
Many of these disputes result in court-ordered injunctions that halt the entire construction process. Even when a 51 percent majority is achieved, legal claims filed by dissenting homeowners can result in annotations on the title deeds, preventing transactions or construction. Lawsuits often center around disputes over land share allocation and the preservation of prestige and fairness in flat distribution.
Property Owners Are Filing More Lawsuits
Babadağ highlighted that a growing number of homeowners, especially those who feel coerced into signing development agreements, are seeking legal remedies after the fact. Some residents agree to contracts out of fear of losing their homes or being excluded, only to later challenge the terms in court. These legal actions place a freeze on the project’s legal status, affecting all titleholders involved.
This situation is compounded by the ambiguity in the law itself. While the regulation enables 51 percent of stakeholders to move forward with redevelopment, it does not clearly define whether property allocation should be based on existing net square meters, floor location, or land share percentage.
“Some believe they can reassign apartments arbitrarily, for example moving a ground-floor owner to the top floor or vice versa,” Babadağ said. “But the spirit of the law implies that existing entitlements should be protected and improvements negotiated fairly. Unfortunately, because this is not explicitly written, legal loopholes persist.”
The Realities of Profit Sharing in Different Neighborhoods
Profit-sharing ratios between contractors and homeowners vary significantly depending on neighborhood value, project complexity, and legal restrictions. Babadağ pointed out that in areas like Bağdat Caddesi, homeowners may receive as much as 70 percent of the new property, while the contractor keeps 30 percent. For commercial properties, the ratio can go up to 80 percent in favor of the titleholder.
“In Küçükyalı, a recent project involved 55 owners receiving 55 percent while the contractor took 45 percent,” she said. “In Beşiktaş, the split was 68 to 32, while in Güngören it was an even 50-50. These are averages, but they reflect how market dynamics and technical feasibility shape negotiations.”
Each zone has its own unique challenges. In upscale neighborhoods like Etiler, strict floor height restrictions prevent high-rise construction. Without special permits, most developments are limited to five floors, depending on the building’s ground elevation.
Over 340 Buildings Delivered with Ongoing Advisory Services
Babadağ’s consultancy firm has helped deliver more than 340 buildings through urban transformation initiatives, providing both project management and legal advice throughout the process.
“Our approach is based on fairness and accuracy,” she noted. “We begin by mapping out the net usage area and identifying any added value or prestige that needs to be protected. Then we create architectural plans accordingly and present them to the owners. Once approved, we draft legal and technical specifications.”
These detailed reports are then used to attract contractor bids. Homeowners independently select and negotiate with contractors using these documents, after which Meka Yapı steps in to evaluate the offers. Factors such as financial stability, track record, rental compensation offers, and construction credentials are all considered. The contractor receiving the most votes from homeowners is then chosen for the project.
Currently, the firm is advising on 60 to 65 additional projects in various stages of planning and development.
Legal Reform Still Leaves Questions Unanswered
Despite recent legislative efforts, Babadağ emphasized that urban transformation laws still lack clarity in key areas, particularly around how entitlements should be calculated. This has led to an estimated 30 percent increase in lawsuits related to urban transformation projects.
“The law says you can proceed with 51 percent, but it does not specify whether that applies to building layout, apartment location, or valuation method,” she explained. “Without that clarity, some project leaders interpret the law as a blank check to do whatever they wish once they reach a majority. That’s not in the spirit of fair transformation.”
Balancing Safety, Investment, and Rights
The need for urban transformation in Istanbul is undeniable, especially in older districts prone to earthquake risks. However, ensuring that the process is just, transparent, and inclusive remains a significant challenge. The balance between contractor profit, legal entitlements, and neighborhood aesthetics must be carefully managed.
What sets successful transformation projects apart is clear communication, professional mediation, and adherence to both the letter and spirit of the law. As long as grey areas persist in legislation and project management, disputes will continue to arise, slowing progress in a city that desperately needs safer and more modern housing infrastructure.
