Changes proposed by the urban transformation bill include the following: areas may be declared urban transformation sites with the proper city assembly decision; the relevant state units are given immediate authorization for expropriation of personally owned property; the owners of slum houses constructed before Oct. 12, 2004 and those illegal buildings and their residents are given the right to buy public housing under lenient conditions including small payments over 20 years.

İstanbul Mayor Kadir Topbas, drawing attention to the growing problems in connection with the burgeoning population and random settlement, says: “The city’s growth along the east-west instead of the north-south axis is causing problems. Seventy-five percent of the 1,600,000 buildings in İstanbul were constructed outside the guidelines of development plans. We’ve started implementing the urban transformation projects. During this term, 50,000 buildings will be constructed with the participation of TOKİ. The majority of the new houses will be allotted to the poor. We have demolished more than 4,500 illegal houses so far. This is the best indicator suggesting that we will not tolerate illegal settlement.”

Pendik Mayor Erol Kaya underlines that the new bill will create obligations for local administrations. In reference to the powers given to local administrations under the bill, Kaya notes that they will have the authority to collect the costs of reinforcing weak buildings against the risk of earthquake from the owners if the latter proves reluctant to make the necessary reinforcements in the specified time period. Kaya, who believes that this authority will suffice to resolve the major problem with regard to the reinforcement of buildings, also stresses that there are 2,500,000 illegal or slum houses in İstanbul.

Former Bağcılar Mayor Feyzullah Kıyıklık, who called for the adoption of the bill, which he describes as perfect for creating livable residential areas, notes that the administration has already started urban transformation in relatively small areas. Noting that new buildings are being made ready six months after demolition of the old, Kıyıklık says they will meet with various parties to accelerate the demolition process. Küçükçekmece Mayor Aziz Yeniay, who strongly believes that cities should be renewed, underlines that the bill is important for cities under the threat of major quakes like İstanbul.

Urban transformation will boost economy

Dumankaya İnşaat board member Ali Dumankaya notes: “The economy will revive through such a bold move. It will also contribute to the resolution of the unemployment problems.” Stressing that the only thing required for urban transformation in Istanbul was the political will to do so, Dumankaya further added: “The current government seems to be eager to implement urban transformation. It wants to start this major project soon. Political resolution is very crucial in this particular endeavor that concerns thousands of families. Local administrations are eager to implement the project for the sake of having the ability to provide better services. Resolution of some unique problems without the active participation of local administrations is very unlikely. Furthermore, some incentives including tax exemptions should be introduced under this program. Urban transformation can be easily implemented in İstanbul under the governance of a resolute administration.”

Stressing that a substantial portion of İstanbul’s buildings should be renewed in 10 years; Dumankaya also says the most important detail in urban transformation is to convince the owners of the buildings. “Buildings constructed before 1999 should be renewed. However, you cannot tell a legal owner to evacuate his house. It is his legal right to remain resident in the house. The owners should be persuaded. Occasionally, we do some transformation work by gathering 20-30 owners together. The difficulty becomes clear with thousands of buildings,” Dumankaya says.

Asserting that the construction sector had recently contributed much to the Turkish economy, Dumankaya noted that the share of the construction sector in the total economy is close to 20 percent. “The construction sector [and urban transformation] will boost the economy and substantially contribute to the resolution of chronic unemployment problem. Thousands will employed; the markets will be revived. There will be no financing problem for the transformation. We are able to secure additional sources from abroad. If necessary, consortiums are created to implement the urban transformation in large areas. Mortgage interest will inevitably go down below 1 percent,” he said.

Asserting that the new houses produced via urban transformation in city centers will easily attract buyers, Dumankaya says there will be no problem regarding sales simply because Turkey needs 600,000 new houses every year. “Demand is excessive. There are enough houses for the A group section [with a high level of income] in İstanbul. There is ongoing production for the B and C groups,” Dumankaya said and further added that more houses can be built under the urban transformation program for the working people whose income is limited.