Historical Opportunity in Urban Transformation: Time is Running Out in Istanbul CEESS Global Informs The 6.2 earthquake that occurred off the Sea of Marmara on April 23rd once again brought millions of people in Istanbul and its surroundings face to face with the reality: this city can't wait anymore. The state-supported urban transformation campaigns launched under the leadership of the Ministry of Environment, Urbanism and Climate Change offer a historical turning point both in terms of life safety and investment opportunity. 600 Thousand Buildings in Istanbul Are at Risk Approximately 1.5 million of the 7.5 million structures in Istanbul are considered to be at risk status. In particular, it has been determined that 600 thousand buildings are at risk of collapse at any moment. In the face of this critical picture, the non-refundable grants, interest-free loans and relocation assistance offered by the government provide a great support for citizens. Who Is Conducting the Process? As of 2023, 65% of the active transformation projects in Istanbul are directly managed by the Ministry. While the private sector has a share of 34%, the Istanbul Metropolitan Municipality contributes only 1%. This clearly shows that the main burden of the transformation process is carried out in cooperation between the state and the private sector. The Answer to the 5 Most Curious Questions from CEESS Global 1. Who can benefit from this support? In all districts of Istanbul, property owners with risky structures can apply. The necessary first step: to make risky structure detection through licensed institutions. 2. How much support does the state provide? For residences: 875.000 TL grant 875.000 TL interest-free loan 125.000 TL relocation assistance Total: 1.875.000 TL support For workplaces: 437.500 TL grant 437.500 TL loan 125.000 TL relocation assistance Total: 1.000.000 TL support Note: Credit rating and income level are not searched. 3. How are the supports paid? All supports are transferred directly to the contracting company on behalf of the rights holders. Relocation assistance is provided to the landlord or tenant one-on-one. 4. How is the repayment of loans paid back? Paying back the interest-free loan starts 2 years after moving to the new building. Payments are spread over a maturity of up to 10 years and proceed with an increase of half of the CPI. 5. Does TOKI or Emlak Konut come into play? If the agreement of all rights holders is obtained in the island-based transformation, TOKI and Emlak Konut can participate in the project. In this case, the grant is deducted directly from the cost. How is Risky Building Detection Performed? Application: Applications are made to institutions that have received a license from the Ministry. Examination: Technical analysis is performed by taking a concrete sample. Reporting: If the report is approved, the building is declared a “risky structure”. Demolition and Reconstruction: The transformation process is started, the necessary supports are activated.