The Turkish construction industry is experiencing a historic transition. Fundamental changes in urban renewal laws and the urgent need for earthquake-resistant buildings have created unique opportunities for landowners and investors. At Zersan Global, as your strategic partner, we provide a transparent, legal, and profitable roadmap for construction in Istanbul. Our goal goes beyond building walls; we seek to create added value, guarantee capital security, and implement the most precise engineering standards.
Why Construction in Turkey?
Istanbul is no longer just a tourist city; it is the hub for real estate investment in the region. With the new laws on urban renewal of distressed areas and government incentives, now is the best time to convert old properties or raw land into modern and safe structures.
But Why Partnership?
- Cost Management: In Turkey's inflationary conditions, construction costs (labor and materials) fluctuate significantly. Partnership shares the financial risk between the owner and the developer.
- Technical Expertise: Municipality regulations and seismic standards in Turkey have become very strict. A team is needed that is proficient in the intricacies of obtaining permits (Ruhsat) and occupancy certificates (Iskan).
- Added Value: Converting an old property into a new apartment in areas like Kadıköy or Şişli can multiply your capital several times over.
Types of Construction Partnership in Turkey
There are various ways to enter the construction industry in Turkey. Based on your needs and project conditions, we propose three main collaboration models, each with its own advantages and legal structure. Choosing the right model is the first step toward project success.
1. Percentage-Based Partnership (Kat Karşılığı)
This is the most common and popular method in Istanbul, referred to in Turkish law as "Kat Karşılığı İnşaat Sözleşmesi" (Construction in Exchange for Land Share).
How it works: In this model, as the landowner, you provide your property to us, and we, as the developer, undertake all costs of construction, obtaining permits, and execution. Finally, the built units are divided based on the agreed-upon percentage.
Important Legal Note in Percentage Partnership: According to Turkish laws, a handwritten agreement for this partnership is invalid. The contract must be registered at a Notary Public (Noter) as a "Promise of Sale" to guarantee your legal security.
2. Barter Partnership
In the current inflationary conditions where liquidity is scarce, the barter system is considered a strategic financial tool.
How it works: In this method, the landowner transfers a portion of the property to the developer and, in return, receives specific residential or commercial units in the building instead of cash.
Advantage: This method accelerates the process for both developers and owners. The developer is not involved in heavy cash payments for land purchase, and the landowner is certain that the value of their asset grows with property inflation. Additionally, construction companies can use barter checks backed by real estate to supply materials.
3. Joint Venture
This model is used for large-scale projects or when parties want to fully share the risk and profit.
- How it works: Both the owner and the developer participate in financing the project and divide the final sales profit between themselves.
- Types of Joint Venture:
- Civil Partnership: Has joint and several liability, meaning both parties are responsible for the entire project.
- Consortium: Each party is responsible for a specific technical section.
Legal Stages of Construction Partnership
For a construction project in Istanbul to reach completion without legal problems, adherence to the following principles in our services is mandatory. These are the standards that distinguish a successful project from a failed one.
1. Transparent and Legal Contract (Beyond just a Paper)
The cornerstone of our work is the standard Kat Karşılığı contract. We know that according to Turkish law, this contract is a combination of a promise of sale and a construction contract.
- Official Status: All our contracts are registered at the Notary (Noter).
- Precise Technical Specifications: We avoid general phrases like "first-class materials." For example, the contract specifically mentions the elevator brand, type of insulation and heating system, brand of faucets and ceramics, etc. These details prevent any disputes at the time of delivery.
2. Cost and Inflation Management
Given the 54% increase in labor costs and 26% in materials in 2024, financial management in construction is vital.
- We have permanent execution teams which reduces our dependence on expensive daily labor.
- Our contracts include price adjustment clauses transparently and fairly so that if inflation spikes, the project does not stop and the rights of both parties are not violated.
3. Obtaining Occupancy (Iskan)
Many buildings in Istanbul are constructed but do not have Iskan. Without Iskan, the building is legally unfinished, and its water and electricity are calculated at expensive construction rates. In our services, obtaining the completion certificate (Iskan) is among the key obligations of the developer.
Tax Advantages in Turkish Urban Renewal
If your property is old, Turkey's Law No. 6306 (Renewal of Areas Under Risk) is the best opportunity to renovate and upgrade the value of your property. The Turkish government provides extensive incentives to encourage renewal:
What is the 50% + 1 Law?
In the past, 100% consent of the owners was required for the renewal of an apartment, which led to a stalemate. But with the new law, if owners of 50% + 1 of the land shares agree, the renewal takes place, and the project is not delayed by the opposing minority.
Table of Tax and Government Incentives
Collaborating with us under the urban renewal scheme significantly reduces your costs:
| Tax/Fee Type | Standard Project | Urban Renewal Project (Kentsel Dönüşüm) |
|---|---|---|
| Title Deed Fee (Tapu Harcı) | 4% of transaction value | 0% (Fully Exempt) |
| Value Added Tax (VAT) for units < 150m | 10% to 20% | 1% |
| Notary Fees | Full Rate | Exempt |
| Stamp Duty (Damga Vergisi) | Full Rate | Exempt |
How to Collaborate in Construction with Zersan Global
To let you know exactly what stages are taken, we have divided the complex administrative and technical process in Istanbul into the following transparent steps:
- Consultation and Feasibility: Checking the title deed status, municipality zoning, and construction density potential.
- Legal Contract: Drafting the contract, agreeing on the material list, and official registration at the Notary.
- Evacuation and Demolition: Using government subsidies for temporary housing of residents and principled demolition.
- Obtaining Permit (Ruhsat): Preparing architectural, structural, electrical, and mechanical plans, municipality approval, and conducting precise soil testing (Zemin Etüdü) for earthquake-resistant foundation design is vital at this stage.
- Execution and Construction: Excavation, skeleton work, masonry, and finishing according to the schedule.
- Handover and Occupancy: Key delivery (Anahtar Teslim) and administrative follow-up until the issuance of new title deeds and completion of work.
Benefits of Construction Partnership in Turkey
If you intend to enter this market as a foreign investor, two major advantages await you:
Obtaining Turkish Citizenship: By investing at least $400,000 in real estate projects, you and your family receive a Turkish passport. Our strategy in renewal projects is that you enter at a lower price by pre-purchasing or participating at the soil stage, and by the time the project is completed, the property value has grown and the citizenship condition is met.
USD-Indexed Income: In barter contracts and large partnerships, our pricing basis is usually currency-equivalent to keep your capital safe from Lira fluctuations.
Note: Foreigners have limitations in land ownership (maximum 30 hectares) and need grading for large contracting projects. We remove these barriers for you by creating Joint Ventures with reputable Turkish companies.
Why Trust Us?
In the crowded Istanbul market, our services are based on professional principles:
- Experience: We have solved the real challenges of owners in areas like Fikirtepe and Esenyurt. Our documented portfolio, including real photos from excavation stages to handover, is proof of this claim.
- Expertise: Our team consists of real estate lawyers proficient in TBK laws and civil engineers who are members of the Turkish Chamber of Civil Engineers.
- Transparency: Office address, company registration number, and our records are available to you. We are honest about risks like potential delays and have contractual solutions for them.
Next Step to Start Partnership
Investment in Istanbul's construction leaves no room for error because one wrong advice can lead to years of uncertainty. For more details and to coordinate a consultation session in Istanbul, in-person or online, you can contact our legal and technical experts at Zersan Global. We will review your goals and suggest the best partnership model with an accurate profit estimation.
Frequently Asked Questions about Construction Cooperation
Who pays our house rent during construction? In urban renewal, the government provides a rent subsidy. We commit to paying the difference up to the actual rent of a suitable house in the area so that no cost is imposed on you.
Can I sell my unit during construction? Yes. With the issuance of the preliminary title deed, a legal sale is possible. Of course, the selling price at this stage is usually about 20% lower than a completed unit.
Who pays for water and electricity utilities? All infrastructure costs and municipality fees are with the developer. Only the cost of purchasing the meter and the specific connection fee for the new unit will be the responsibility of the owner.
What guarantee is there for the quality of materials? A precise list of brands and models of materials is attached to the notarized contract. Any violation of this list gives you the right to sue and receive legal damages.
What is the difference between "Kat İrtifakı" and "Kat Mülkiyeti" title deeds? Kat İrtifakı is the temporary deed during the construction period. Kat Mülkiyeti is the final six-part deed issued after obtaining the occupancy permit. Receiving the final deed is among our obligations.
What happens to neighbors who oppose renewal? According to the new law, the consent of 50% + 1 of the owners (based on land area) is sufficient. The share of opposing owners is auctioned by the government according to the law, and the project does not stop.
Can Turkish citizenship be obtained through construction partnership? Yes, provided that the official value of your property share at the end of the project is appraised at a minimum of $400,000. We set up the tax file in such a way that this condition is met.
How is the project delivery time exactly calculated? We write two separate time frames in the contract: 1. The deadline for obtaining the construction permit 2. The duration of execution. For each day of delay in any of these stages, a late penalty is determined.
