What is Urban Transformation?

Urban transformation is increasingly vital in modern urban development, especially in countries like Turkey, where a significant portion of the building stock is under seismic risk. Today, nearly one-third of buildings in Turkey are at risk in the event of an earthquake, making transformation efforts not only practical but essential for public safety. Recent earthquakes have reminded us of the need for secure, durable structures, and the upcoming legislative changes in 2025 make this transformation process more urgent than ever.

In this guide, we will explain all the stages of the urban transformation process step by step, along with your legal rights and government supports, with the expertise of Yükselen Mimari. This way, we will be by your side to help you take informed and secure steps throughout the transformation journey.

Definition and Scope of Urban Transformation

Urban transformation refers to the process of upgrading the physical, social, and economic structures of cities. It involves replacing aging, deteriorating, or structurally unsafe buildings with safer, modern ones that meet current standards. However, this transformation extends beyond just the physical aspects. It also aims to improve urban life quality, promote social cohesion, and drive sustainable development. Effective urban transformation not only rebuilds neighborhoods but reinvents them to meet the evolving needs of modern society.

Legal Framework Governing Urban Transformation

In Turkey, urban transformation is primarily regulated under Law No. 6306, known as the Law on the Transformation of Areas Under Disaster Risk. This law outlines procedures for identifying and redeveloping risky buildings or plots, ensuring new construction complies with engineering and safety standards. Additionally, the Municipality Law No. 5393 grants local governments the authority to identify and initiate urban transformation projects. The Zoning Law No. 3194 and Squatter Housing Law No. 775 further supplement this framework by addressing unregulated urban development and informal settlements. Together, these regulations create a comprehensive legal basis for planning, approving, and executing urban transformation efforts.

Objectives and Societal Impacts

The primary aim of urban transformation is to reduce disaster-related risks, particularly in earthquake-prone regions. Replacing vulnerable structures with earthquake-resistant buildings is critical for saving lives. Other objectives include enhancing energy efficiency, improving infrastructure, preventing irregular urban growth, and creating greener, more livable spaces. On a societal level, urban transformation can improve living standards and foster economic development. However, if not planned inclusively, it can also lead to displacement and social inequality, highlighting the importance of community participation.

Public Participation and Social Considerations

For urban transformation to succeed, the involvement of local communities is essential. Citizens should be engaged in planning and decision-making processes, ensuring that their concerns are addressed, and that social cohesion is maintained. This inclusive approach not only prevents displacement but also strengthens public trust in redevelopment efforts. When transformation is done with transparency and public input, it leads to better-designed, more socially sustainable neighborhoods.

How a Building Qualifies for Urban Transformation?

The transformation process begins when a building is officially identified as “risky.” Property owners or co-owners can apply to a licensed institution, approved by the Ministry of Environment, Urbanization, and Climate Change, to obtain a risk assessment report. With this report, the transformation process officially begins, and with the approval of two-thirds of the property owners, the building is demolished and replaced with a new structure that is earthquake-resistant and built to meet modern standards. Throughout this process, the state provides financial assistance, including rent subsidies and tax exemptions.

Risk Assessment Process

Risk assessments are conducted by institutions authorized by the Ministry. Building owners must submit a formal application along with ownership documents and ID verification. Experts examine the building’s structural systems, material quality, and overall safety to prepare a comprehensive report. Costs for these assessments are borne by the applicants. As of 2025, the pricing is structured as follows:

• Up to 500 m²: 2.25 TL per m²

• Between 500–1000 m²: 1,125 TL + (m²-500) × 1.75 TL

• Over 1000 m²: 2,000 TL + (m²-1000) × 1.00 TL

Who Can Apply for Risk Assessment?

Any single property owner can initiate a risk assessment, there is no need for two-thirds majority at this stage. For buildings with shared ownership or unregistered parcels, the owner or the individual with a recognized share can apply. If the property is recorded as belonging to another person in the land registry, only those with a legal annotation in favor of demolition can initiate the process. Tenants and limited right holders cannot apply for this assessment.

Objection Process to Risk Determination

Once a building is classified as risky, this status is officially recorded and shared with all stakeholders. Owners have 15 days from notification to file an objection with the relevant authority. Appeals are reviewed by a technical committee consisting of seven members, four from universities and three from the Ministry. Decisions require participation from at least five members and are determined by majority vote. If the committee upholds the risk report, the building is set for demolition. If overturned, the risk status is removed.

Step-by-Step Urban Transformation Process

Once the transformation decision is finalized, the process follows several key stages: demolition, site preparation, contractor selection, construction, and reallocation. It’s crucial for property owners to understand each step to protect their legal rights and ensure a smooth transition to their new homes.

Demolition and Evacuation Procedures

After risk determination, owners are given a minimum of 60 days to demolish the building. If this deadline is missed, a 30-day extension is provided. Failure to comply results in utility cut-offs and government-enforced demolition. Evacuation is mandatory, and law enforcement may be used if residents refuse to vacate. Interference with the process can result in criminal charges under Turkish law.

Decision-Making by Property Owners

Decisions regarding the reconstruction or sale of the plot after demolition must be made by owners representing at least two-thirds of the ownership shares—not the number of owners. This majority is needed for decisions on land mergers, partitioning, construction methods, and selecting a contractor. Owners who don’t agree may have their shares sold via auction to the agreeing parties at fair market value.

Choosing a Contractor and Signing Agreements

Selecting a trustworthy contractor is crucial. Contractors must provide a financial guarantee equivalent to 10% of the estimated construction cost before obtaining a building permit. The most common arrangement is a land-for-flat agreement, which must be notarized. Contracts should detail construction deadlines, power of attorney scopes, and terms of property transfer to avoid disputes.

New Construction and Title Deed Process

If construction doesn’t begin within a year or halts for an extended period, owners can request termination of the contract with a two-thirds majority. These requests are submitted to the local municipality. Developers are also prohibited from selling units before construction officially begins, adding a layer of consumer protection.

Rights and Government Support for Homeowners

During the transformation process, homeowners are entitled to various forms of government support. These include rental assistance, low-interest loans, and exemption from several taxes and fees—all of which ease the financial burden and incentivize participation.

Rental Assistance and Required Documents

Owners, tenants, and limited rights holders affected by transformation may apply for rent support. Owners receive assistance for up to 18 months. Tenants receive two months’ rent as a one-time relocation grant, and limited right holders are eligible for five months' rent. Applications must be filed within one year of evacuation or within three months of demolition. Required documents include:

• Application form

• Title deed and updated land registry record

• ID copy

• Proof of address

• Risk assessment report

• Demolition certificate

• Ziraat Bank account information

Low-Interest Loans for 2025

Under Law No. 6306, homeowners can access low-interest loans for rebuilding or strengthening their properties. The limits are:

• Up to 1,250,000 TL per residential unit

• Maximum of 6,000,000 TL in total for multiple units

• Up to 320,000 TL per unit for strengthening projects

Loan terms extend up to 10 years for residences and 7 years for commercial properties. Grace periods of up to 24 months for construction and 12 months for purchasing are available.

Tax and Fee Exemptions

Urban transformation projects are eligible for several exemptions:

• Notary, title deed, and municipal fees

• Stamp tax and inheritance tax

• Revolving fund charges

In designated risky zones, municipalities waive fees for construction areas up to 1.5 times the current area. These exemptions apply regardless of zoning compliance or intended building use.

Why Urban Transformation is Critical?

Urban transformation presents both challenges and opportunities for property owners. For those in earthquake-prone areas, it is a lifeline. With state-provided rent subsidies, financial support, and legal protections, the process is becoming more accessible and manageable. Understanding the full journey from risk assessment to key handover is essential for safeguarding your investment and well-being.

Urban transformation is an indispensable strategy for building safer, more livable cities. By learning your legal rights, preparing properly, and seeking expert guidance, you can ensure a smooth and successful experience. Take the first step toward a more secure future by assessing your building’s risk status today. Every step you take is an investment in tomorrow.