In response to the persistent earthquake risk in Istanbul, an ambitious urban transformation initiative has been launched, setting a target to renew approximately 600,000 houses in Istanbul that urgently need reconstruction within the next five years.
The urban transformation efforts, vital for mitigating earthquake threats, particularly focus on Istanbul, where tens of thousands of independent housing units require rapid reconstruction. The current governmental initiative is actively engaged in the reconstruction process for nearly 200,000 independent housing units in Istanbul.
This comprehensive project addresses the urgent need for renewal and aligns with broader urban resilience goals, emphasizing the importance of earthquake-resistant structures and sustainable development in the region. As the transformation progresses, it seeks to create safer and more resilient urban spaces for the residents of Istanbul, contributing to the community's overall well-being.
The private sector's lack of interest in transformation projects in recent years due to resource difficulties 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 TL 1.5 trillion ($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 Chair 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 (IMKON), said that the deficit in the need for a labor force has become very large and that there is a need for regulations on major issues such as construction conditions, cost and bureaucracy 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 TL 600,000 housing construction and acquisition support was increased to TL 1,250,000. 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 TL 3,500 given to beneficiaries in Istanbul was increased to TL 5,500. 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 TL 1.5 million of support for each independent section.
