Anyone who owns property, rents, or invests in Istanbul will eventually run into the term “kentsel dönüşüm” — Turkey’s urban transformation program. For property owners and contractors alike, understanding the legal basis, the stages of the process, and the rules that changed in 2026 is essential to moving through it quickly and safely. This article explains what urban transformation is, who is involved, and how the current process works from start to finish.
The Legal Basis
Turkey’s urban transformation framework rests on Law No. 6306 on the Transformation of Areas Under Disaster Risk, in force since 2012. Its core purpose is to identify older buildings that carry earthquake risk, replace them with structures that meet current construction standards, and do so within a predictable legal framework rather than leaving renewal to informal negotiation.
The authority responsible for implementing the law is the Presidency of Urban Transformation (Kentsel Dönüşüm Başkanlığı). It issues and periodically updates the implementing regulations that govern risk assessments, owner decision-making, contractor procedures, and financial support mechanisms. 2026 saw one of the most fundamental changes to the decision-making rules in the program’s history — a change we cover in detail in the next article in this series.
Who Is Involved
A typical urban transformation file involves several parties:
- Owners (malikler): The holders of title to the individual units — flats, shops, offices — in the building. Owners carry the greatest share of rights and obligations throughout the process.
- The contractor (müteahhit): The construction company that undertakes the demolition and rebuilding, typically under a “build-for-share” model agreed with the owners.
- The construction supervision company (yapı denetim kuruluşu): An independent firm that checks the build against the approved project, structural calculations, and applicable regulations.
- The Presidency of Urban Transformation and authorized institutions: The administrative bodies that approve the risk assessment and oversee the process under the law.
- The municipality: The local authority responsible for building permits, zoning status, and occupancy approval.
The Stages of the Process
A typical urban transformation process in Istanbul moves through the following stages:
1. Risky building assessment
The process begins when a unit owner applies to an institution authorized by the Presidency to have the building inspected for earthquake risk. A technical team examines the load-bearing structure and produces a risk report. If the building is found “risky,” this is recorded as an annotation on the title deed. We cover this stage in more depth in a separate article.
2. The owners’ meeting and decision
Once the risky-building finding is final, the owners must decide whether to demolish and rebuild or to reinforce the existing structure. As of 2026, this decision can be taken by a simple majority based on ownership share — informally called “P+1,” meaning more than half the shares — rather than the two-thirds majority previously required. We explain the procedural details of this decision in the next article.
3. Choosing a contractor and signing a contract
If the owners decide to demolish and rebuild, they need to reach an agreement with a contractor. This is usually structured as a “build-for-share” construction contract (kat karşılığı inşaat sözleşmesi), under which the owner transfers their share of the land and receives one or more units in the new building in return. Because this contract transfers rights in real property, it must be executed in the formal manner required by Turkish law — before a title registry office or a notary — for it to be valid and enforceable.
4. Permits, demolition, and construction
The contractor obtains a building permit from the municipality, the existing structure is demolished, and construction begins. Throughout this stage, an independent construction supervision company checks that the build matches the approved project and complies with applicable regulations.
5. Delivery
Once construction is complete, the finished units are handed over to the owners and the title transfer is completed at the land registry.
How Long Does It Take?
Timelines vary considerably depending on the size of the building, how quickly the owners reach agreement, and the contractor’s capacity. The time between applying for a risk assessment and receiving an approved report is expected to shorten as digitalization of the process continues. The new simple-majority rule is also significantly speeding up buildings that had been stalled for years by a single dissenting owner.
What This Means for Property Owners
Urban transformation is not just a construction project — it is a legal process that touches ownership rights, the family home, and often a lifetime of savings. Every document signed along the way — meeting minutes, the construction contract, the handover record — will matter if a dispute arises later. Keeping written records at every step, and consulting a lawyer before signing anything, prevents avoidable losses down the line.
What This Means for Contractors
For contractors, urban transformation represents significant business opportunity, but also legal and financial risk that has to be actively managed: disputes among owners, title irregularities, delays in permitting, and guarantee obligations all have a direct effect on whether a project finishes on time and profitably.
Frequently Asked Questions
Is entering the urban transformation process mandatory? Once a building is officially found to be “risky,” the law expects the transformation process to be initiated; failing to start it can expose owners to administrative measures and, more importantly, ongoing safety risk.
Do all owners need to agree unanimously? No. As of 2026, a simple majority based on ownership share (“P+1”) is sufficient — unanimous consent is not required.
Does the process affect tenants too? Yes — tenants are directly affected by matters like eviction timing and rent assistance. We cover this in a later article in this series.
Conclusion
Thanks largely to the 2026 change in the decision-making rule, the urban transformation process can now move considerably faster than in previous years. Every stage, however, still calls for careful legal attention. Throughout this series, we address each stage of the process separately for property owners and for contractors.
This article is for general information only and is not a substitute for advice from a lawyer on your specific situation. For current regulations and official deadlines, please check the official sources published by the Presidency of Urban Transformation.
