Urban transformation of Istanbul to take 5 years

ISTANBUL

Within the scope of an urban transformation project, the target to renew around 600,000 houses in Istanbul that urgently need reconstruction has been set to five years.

With a persisting earthquake risk threatening Türkiye, urban transformation efforts have long been carried out. At the center of the transformation is Istanbul, where tens of thousands of independent units need to be rapidly rebuilt.

Currently, the government is working on the reconstruction of nearly 200,000 independent units in Istanbul.

The private sector's lack of interest in transformation projects in recent years due to resource disputes has left the burden of urban transformation largely in the hands of the public sector.

Representatives of the construction sector state that the total reconstruction cost of the 600,000 houses that urgently need to be transformed will be over 1.5 trillion Turkish Liras ($ 49.8 billion) 

Stating that the construction sector is capable of meeting the demands of major transformation on the contracting and material production side, Istanbul Chamber of Commerce (ITO) Housing Construction Vocational Committee Chairman Mükremin Tekin said that material cost, labor and excavation cause the main burden in the process.

Tahir Tellioğlu, the president of the Confederation of Construction Contractors (İMKON), said that the deficit in the need for labor force has become very large and that there is a need for regulations on major issues such as construction conditions, cost and bureaucracy in order to make urban transformation attractive to the private sector.

Within the scope of efforts to accelerate urban transformation, the government is implementing incentives for those who transform their own houses.

The 600,000 lira housing construction and housing acquisition support was increased to 1,250,000 liras. The interest support for citizens, which was 600 basis points per year, was increased to 840 basis points in March.

In addition, tenants who have lived in the risky house for at least one year can also take out loans. Buildings constructed within the scope of urban transformation are exempt from taxes and fees.

According to the "rent subsidy increase 2024," the rent subsidies given on a provincial basis are increased. Accordingly, the rent support of 3,500 liras given to beneficiaries in Istanbul was increased to 5,500 liras. Rent assistance is provided for 18 months in risky buildings and a maximum of 48 months in risky and reserve building areas.

Furthermore, the "Half is on Us" campaign will provide a total of 1.5 million liras of support for each independent section.