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08.10.2026
Urban Renewal in Turkey: Why an Urban Renewal New Build Beats a Regular One
Sergei Dubinets, founder and CEO of DDA Real Estate Turkey, licensed real estate broker in Turkey since 2020. Updated: October 2026.
When Clients choose a new build in Turkey, they usually compare the price, layouts, and the complex's amenities. But there is a category of properties that many people overlook, even though in terms of overall advantages it often beats any regular new build. These are urban renewal projects, known in Turkish as kentsel dönüşüm. In this article, I explain what urban renewal in Turkey is, why these properties are located in the most liquid parts of cities, why they are safer, and how they can save you the 4% TAPU tax.
In short: urban renewal in Turkey in 5 facts
Urban renewal (kentsel dönüşüm) is a government program: old buildings are demolished down to the foundation, and new ones are built in their place to modern seismic standards.
Urban renewal projects are located in city centers, where there is no vacant land left for development. These are the most liquid locations.
The government oversees these projects more strictly than regular construction.
By law, transactions in urban renewal projects are exempt from the TAPU tax (4%) and a number of other fees.
The scale is enormous: in Istanbul alone, more than a million apartments and commercial units have gone through urban renewal.
What is urban renewal in Turkey
Urban renewal in Turkey operates under a special law on the transformation of areas at risk of natural disasters, in force since 2012. Its goal is simple: to replace old buildings that may not withstand a strong earthquake with new, safe ones.
How it works:
1. A licensed appraisal organization inspects the old building and designates it as risky.
2. The owners reach an agreement with the developer. They usually receive apartments in the new building under an agreement with the developer or sell their shares to them.
3. The old building is completely demolished, down to the foundation.
4. The developer builds a new building from scratch: a new foundation, a new frame, new utility systems, all to modern seismic standards.
5. Some of the apartments go to the previous owners, and the developer sells the rest to new buyers. These are exactly the apartments we offer to our Clients.
Scale: urban renewal is transforming entire cities
Urban renewal in Turkey isn't a set of individual construction sites, but the transformation of cities. Since 2012, the program has covered 2,761,000 apartments and units in 81 provinces, and urban renewal has already been completed for 2,378,000 of them.
The program's main city is Istanbul. Here, 1,298,000 apartments and units have entered urban renewal, and more than a million projects have already been completed. According to the Urban Renewal Administration, Istanbul has about 7.5 million apartments and units, and roughly 1.5 million of them are considered risky.
The figure of 1.5 million matters to an investor: it means demand for safe housing in Istanbul will keep growing for many years, and urban renewal projects will become increasingly valuable.
Advantage 1: a liquid location
This is the main advantage, and there's simple logic behind it. Urban renewal happens where the city is already built. There is no vacant land in the center, so a new complex can only be built on the site of an old building.
That's why urban renewal projects are usually located:
- in central districts with ready infrastructure: metro, schools, hospitals, shops, waterfronts;
- in established neighborhoods with local residents, not on a vacant lot outside the city;
- where almost no new properties appear, which means supply is limited.
In Istanbul, these are, for example, Beşiktaş and Etiler, as well as Kadıköy with its famous Bağdat Caddesi avenue, where urban renewal has completely transformed the street in recent years.
In Antalya, these are Lara, Muratpaşa, and Konyaaltı, the central and most sought-after districts of the city.
Remember my 10 liquidity metrics? An urban renewal project in a good neighborhood covers several of them at once: location, limited supply, and demand from local residents. Your neighbors will be Turks who have lived on this spot for decades, and that's the best indicator that the neighborhood is the right one.
Of course, urban renewal doesn't make every neighborhood liquid. A project in an unpopular location will remain unpopular. That's why we only consider urban renewal in strong locations.
Advantage 2: safety
In Turkey, where a building's seismic resistance is enormously important, this is the number one argument for many buyers.
A new building from foundation to roof. Urban renewal is not a cosmetic facade renovation. The old building is completely demolished and a new one is built: the foundation, load-bearing frame, floor slabs, all to current seismic standards.
Strict government oversight. Urban renewal projects are under special supervision. An old building is designated as risky only based on the findings of a licensed organization, the process is overseen by the Ministry of Environment, Urbanization and Climate Change, and construction is monitored by independent technical supervision. The government has a stake in making sure the new buildings are reliable: hundreds of thousands of families move back in to live in them.
Owner protection. Previous residents receive apartments in the new building or compensation under the agreement, and during construction the government gives them money for rent. Currently, it's 8,000 lira per month: up to 18 months for risky buildings and up to 48 months in urban renewal zones. The developer works in full view of hundreds of people and the government, and that is strong discipline.
Advantage 3: tax savings
This is what usually surprises Clients the most.
Under the urban renewal law, transactions, contracts, re-registration, and registration in these projects are exempt from notary fees, TAPU tax, municipal fees, stamp duty, and a number of other payments. The exemption also applies to the first sale of apartments in the new building.
What it means in money. In a regular purchase, the TAPU tax is 4% of the value. On a $300,000 apartment, that's $12,000. In an urban renewal project, that money stays with you.
VAT. Under current rules, a reduced VAT rate of 1% applies to apartments of up to 150 m² in urban renewal projects.
What you need to know. The exemption applies only if the project is officially registered under the urban renewal law and the TAPU carries the corresponding annotation. In practice, land registry offices sometimes still charge the tax to buyers purchasing an apartment from the developer, and the money is later refunded through the courts. That's why we check the project's status and documents before the transaction, so the Client receives the exemption right away instead of having to sue for it.
Urban renewal or a regular new build: a comparison
| Regular new build | Urban renewal new build | |
|---|---|---|
| Location | Often the outskirts or a new area without infrastructure | City center, established neighborhood, ready infrastructure |
| Nearby supply | Many new projects, high competition | No vacant land, limited supply |
| Neighbors | Often investors and foreigners | Locals who have lived here for decades |
| Oversight | Standard | Stricter government oversight |
| TAPU tax | 4% | 0% under the urban renewal law |
| Seismic resistance | To current standards | To current standards, with a new foundation and frame |
What to look for when buying an apartment in an urban renewal project
Urban renewal projects are profitable, but, like any property, they require due diligence:
- Project status. The building must be officially designated as risky, and the project must be registered under the urban renewal law. Otherwise, there will be no tax benefits.
- Agreements with previous owners. All owners of the old building must sign an agreement with the developer. A dispute with even one of them can delay construction.
- Developer reliability. We check their past projects, completion timelines, and financial position.
- Building permit and timelines. We look at the actual schedule, not promises.
- Location. Urban renewal in a weak neighborhood doesn't turn it into a strong one.
How DDA Real Estate Turkey helps
DDA Real Estate Turkey has urban renewal projects in both Antalya and Istanbul. We select only those located in liquid neighborhoods that pass our 10-metric filter. Before the transaction, our lawyers check the project's status, the TAPU annotation, the agreements with previous owners, and the developer, so that the Client gets both a safe home and tax savings.
I consider urban renewal one of the most underrated tools in the Turkish real estate market. You buy a new, safe home in the city center, where almost no new buildings are being built, and save thousands of dollars on tax. There aren't many combinations like that on the market.
FAQ about urban renewal in Turkey
What is kentsel dönüşüm?
It is Turkey's government urban renewal program: old buildings at risk in an earthquake are demolished, and new ones are built in their place to modern seismic standards.
Can a foreigner buy an apartment in an urban renewal project?
Yes. Apartments sold by the developer after urban renewal can be bought by foreigners on general terms.
Is TAPU tax paid when buying an urban renewal apartment?
Under the urban renewal law, transactions in these projects are exempt from the TAPU tax. In practice, it's important to check the project's status and the annotation in the TAPU in advance.
Why are urban renewal projects located in the city center?
Because urban renewal takes place on the site of old buildings, and old buildings stand in already developed neighborhoods. There is no vacant land in the city center, so this is the only way new buildings appear there.
Is an urban renewal building safer than a regular new build?
It is built from scratch to the same modern standards, but under stricter government oversight. Plus, you get a new home in a neighborhood where the old housing stock is gradually being replaced with safe buildings.
Does an urban renewal apartment qualify for a residence permit and citizenship?
Yes, if it meets the general requirements: an appraised value of $200,000 or more for a residence permit and $400,000 or more for citizenship.
About the author. Sergei Dubinets, founder and CEO of DDA Real Estate Turkey. He has been working in the Turkish real estate market since 2020 and is a licensed broker. The Company has offices in Istanbul and Antalya. ddakey.com
Sources: Turkish Law No. 6306 on the Transformation of Areas at Risk of Natural Disasters; Ministry of Environment, Urbanization and Climate Change of Turkey, data as of August 2026; Turkish Urban Renewal Administration.
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08.10.2026
Urban Renewal in Turkey: Why an Urban Renewal New Build Beats a Regular One
Sergei Dubinets, founder and CEO of DDA Real Estate Turkey, licensed real estate broker in Turkey since 2020. Updated: October 2026.
When Clients choose a new build in Turkey, they usually compare the price, layouts, and the complex's amenities. But there is a category of properties that many people overlook, even though in terms of overall advantages it often beats any regular new build. These are urban renewal projects, known in Turkish as kentsel dönüşüm. In this article, I explain what urban renewal in Turkey is, why these properties are located in the most liquid parts of cities, why they are safer, and how they can save you the 4% TAPU tax.
In short: urban renewal in Turkey in 5 facts
Urban renewal (kentsel dönüşüm) is a government program: old buildings are demolished down to the foundation, and new ones are built in their place to modern seismic standards.
Urban renewal projects are located in city centers, where there is no vacant land left for development. These are the most liquid locations.
The government oversees these projects more strictly than regular construction.
By law, transactions in urban renewal projects are exempt from the TAPU tax (4%) and a number of other fees.
The scale is enormous: in Istanbul alone, more than a million apartments and commercial units have gone through urban renewal.
What is urban renewal in Turkey
Urban renewal in Turkey operates under a special law on the transformation of areas at risk of natural disasters, in force since 2012. Its goal is simple: to replace old buildings that may not withstand a strong earthquake with new, safe ones.
How it works:
1. A licensed appraisal organization inspects the old building and designates it as risky.
2. The owners reach an agreement with the developer. They usually receive apartments in the new building under an agreement with the developer or sell their shares to them.
3. The old building is completely demolished, down to the foundation.
4. The developer builds a new building from scratch: a new foundation, a new frame, new utility systems, all to modern seismic standards.
5. Some of the apartments go to the previous owners, and the developer sells the rest to new buyers. These are exactly the apartments we offer to our Clients.
Scale: urban renewal is transforming entire cities
Urban renewal in Turkey isn't a set of individual construction sites, but the transformation of cities. Since 2012, the program has covered 2,761,000 apartments and units in 81 provinces, and urban renewal has already been completed for 2,378,000 of them.
The program's main city is Istanbul. Here, 1,298,000 apartments and units have entered urban renewal, and more than a million projects have already been completed. According to the Urban Renewal Administration, Istanbul has about 7.5 million apartments and units, and roughly 1.5 million of them are considered risky.
The figure of 1.5 million matters to an investor: it means demand for safe housing in Istanbul will keep growing for many years, and urban renewal projects will become increasingly valuable.
Advantage 1: a liquid location
This is the main advantage, and there's simple logic behind it. Urban renewal happens where the city is already built. There is no vacant land in the center, so a new complex can only be built on the site of an old building.
That's why urban renewal projects are usually located:
- in central districts with ready infrastructure: metro, schools, hospitals, shops, waterfronts;
- in established neighborhoods with local residents, not on a vacant lot outside the city;
- where almost no new properties appear, which means supply is limited.
In Istanbul, these are, for example, Beşiktaş and Etiler, as well as Kadıköy with its famous Bağdat Caddesi avenue, where urban renewal has completely transformed the street in recent years.
In Antalya, these are Lara, Muratpaşa, and Konyaaltı, the central and most sought-after districts of the city.
Remember my 10 liquidity metrics? An urban renewal project in a good neighborhood covers several of them at once: location, limited supply, and demand from local residents. Your neighbors will be Turks who have lived on this spot for decades, and that's the best indicator that the neighborhood is the right one.
Of course, urban renewal doesn't make every neighborhood liquid. A project in an unpopular location will remain unpopular. That's why we only consider urban renewal in strong locations.
Advantage 2: safety
In Turkey, where a building's seismic resistance is enormously important, this is the number one argument for many buyers.
A new building from foundation to roof. Urban renewal is not a cosmetic facade renovation. The old building is completely demolished and a new one is built: the foundation, load-bearing frame, floor slabs, all to current seismic standards.
Strict government oversight. Urban renewal projects are under special supervision. An old building is designated as risky only based on the findings of a licensed organization, the process is overseen by the Ministry of Environment, Urbanization and Climate Change, and construction is monitored by independent technical supervision. The government has a stake in making sure the new buildings are reliable: hundreds of thousands of families move back in to live in them.
Owner protection. Previous residents receive apartments in the new building or compensation under the agreement, and during construction the government gives them money for rent. Currently, it's 8,000 lira per month: up to 18 months for risky buildings and up to 48 months in urban renewal zones. The developer works in full view of hundreds of people and the government, and that is strong discipline.
Advantage 3: tax savings
This is what usually surprises Clients the most.
Under the urban renewal law, transactions, contracts, re-registration, and registration in these projects are exempt from notary fees, TAPU tax, municipal fees, stamp duty, and a number of other payments. The exemption also applies to the first sale of apartments in the new building.
What it means in money. In a regular purchase, the TAPU tax is 4% of the value. On a $300,000 apartment, that's $12,000. In an urban renewal project, that money stays with you.
VAT. Under current rules, a reduced VAT rate of 1% applies to apartments of up to 150 m² in urban renewal projects.
What you need to know. The exemption applies only if the project is officially registered under the urban renewal law and the TAPU carries the corresponding annotation. In practice, land registry offices sometimes still charge the tax to buyers purchasing an apartment from the developer, and the money is later refunded through the courts. That's why we check the project's status and documents before the transaction, so the Client receives the exemption right away instead of having to sue for it.
Urban renewal or a regular new build: a comparison
| Regular new build | Urban renewal new build | |
|---|---|---|
| Location | Often the outskirts or a new area without infrastructure | City center, established neighborhood, ready infrastructure |
| Nearby supply | Many new projects, high competition | No vacant land, limited supply |
| Neighbors | Often investors and foreigners | Locals who have lived here for decades |
| Oversight | Standard | Stricter government oversight |
| TAPU tax | 4% | 0% under the urban renewal law |
| Seismic resistance | To current standards | To current standards, with a new foundation and frame |
What to look for when buying an apartment in an urban renewal project
Urban renewal projects are profitable, but, like any property, they require due diligence:
- Project status. The building must be officially designated as risky, and the project must be registered under the urban renewal law. Otherwise, there will be no tax benefits.
- Agreements with previous owners. All owners of the old building must sign an agreement with the developer. A dispute with even one of them can delay construction.
- Developer reliability. We check their past projects, completion timelines, and financial position.
- Building permit and timelines. We look at the actual schedule, not promises.
- Location. Urban renewal in a weak neighborhood doesn't turn it into a strong one.
How DDA Real Estate Turkey helps
DDA Real Estate Turkey has urban renewal projects in both Antalya and Istanbul. We select only those located in liquid neighborhoods that pass our 10-metric filter. Before the transaction, our lawyers check the project's status, the TAPU annotation, the agreements with previous owners, and the developer, so that the Client gets both a safe home and tax savings.
I consider urban renewal one of the most underrated tools in the Turkish real estate market. You buy a new, safe home in the city center, where almost no new buildings are being built, and save thousands of dollars on tax. There aren't many combinations like that on the market.
FAQ about urban renewal in Turkey
What is kentsel dönüşüm?
It is Turkey's government urban renewal program: old buildings at risk in an earthquake are demolished, and new ones are built in their place to modern seismic standards.
Can a foreigner buy an apartment in an urban renewal project?
Yes. Apartments sold by the developer after urban renewal can be bought by foreigners on general terms.
Is TAPU tax paid when buying an urban renewal apartment?
Under the urban renewal law, transactions in these projects are exempt from the TAPU tax. In practice, it's important to check the project's status and the annotation in the TAPU in advance.
Why are urban renewal projects located in the city center?
Because urban renewal takes place on the site of old buildings, and old buildings stand in already developed neighborhoods. There is no vacant land in the city center, so this is the only way new buildings appear there.
Is an urban renewal building safer than a regular new build?
It is built from scratch to the same modern standards, but under stricter government oversight. Plus, you get a new home in a neighborhood where the old housing stock is gradually being replaced with safe buildings.
Does an urban renewal apartment qualify for a residence permit and citizenship?
Yes, if it meets the general requirements: an appraised value of $200,000 or more for a residence permit and $400,000 or more for citizenship.
About the author. Sergei Dubinets, founder and CEO of DDA Real Estate Turkey. He has been working in the Turkish real estate market since 2020 and is a licensed broker. The Company has offices in Istanbul and Antalya. ddakey.com
Sources: Turkish Law No. 6306 on the Transformation of Areas at Risk of Natural Disasters; Ministry of Environment, Urbanization and Climate Change of Turkey, data as of August 2026; Turkish Urban Renewal Administration.
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