Rent Assistance for Urban Transformation Projects in 2025

Rent Assistance for Urban Transformation Projects in 2025. Turkey’s geomorphological structure and its location on active fault lines have placed the concept of “disaster-oriented transformation” at the center of urbanization policies. In this context, Law No. 6306 on “Transformation of Areas Under Disaster Risk” provides a broad legal framework that covers not only the renewal of physical building stock but also the management of the economic and social impacts of this process. One of the most critical components of the urban transformation process is the operation of “Rental Assistance” and “Relocation Support” mechanisms, which aim to ensure housing security for rights holders during the construction process when property rights are temporarily suspended.

As of 2025, the parameters updated by the Ministry of Environment, Urbanization and Climate Change have revealed a new financial support architecture in response to rising construction costs and fluctuating housing market dynamics. This report aims to analyze in depth not only the quantitative dimensions of these supports but also the application principles varying by rights holder status (owner, tenant, limited real right holder), the bureaucratic intricacies of application processes, the operational details of hybrid models like “Half Is On Us” (Yarısı Bizden), and the strategic choice dilemma between rental assistance and interest support.

The main thesis of the report is that urban transformation rental assistance is not merely a simple social transfer, but a strategic incentive tool that directly affects the speed and success of the transformation process. Our analysis examines differentiated practices in metropolises such as Istanbul, Ankara, and Izmir, the duration differences between risky structure and risky area statuses, and the legal gray areas arising in cases of property transfer, in light of current legislation and 2025 field data.

1. The Legal Ground of Urban Transformation and the Philosophy of State Support

1.1. Law No. 6306 and the Principle of the Social State

Law No. 6306, which forms the legal backbone of urban transformation practices, is a reflection of the state’s obligation to ensure the safety of citizens’ lives and property. While the Law mandates the evacuation and demolition of structures scientifically determined to be risky, it also foresees compensatory mechanisms to remedy the grievances caused by this obligation. Rental assistance is the most widely used of these mechanisms. The state presents this assistance not as a “favor,” but as a compensation for the temporary restriction of property rights usage due to public interest (disaster risk) and as a requirement to protect the constitutional right to housing.

The Implementation Regulation has adopted the principle of “actual use” when determining the scope of assistance. In other words, the legislator aimed to protect the person (owner or tenant) whose housing arrangement is disrupted due to transformation, rather than just the title deed holder. This philosophy explains why residence documents or utility bills are more decisive than title deeds in assistance applications.

1.2. Distinction Between Risky Structure and Risky Area

“Risky Structure” and “Risky Area,” two concepts frequently confused in urban transformation literature, present radical differences in terms of the duration and scope of rental assistance.

Risky Structure: These are structures determined to be demolished based on individual buildings, usually detected by licensed institutions upon the initiative or complaint of floor owners. The vast majority of transformation across Turkey falls into this category.
Risky Area and Reserve Building Area: These are large regions determined by the decision of the Ministry or the Presidency, carrying a risk of loss of life and property due to ground structure or construction thereon. Since projects carried out in these areas require more comprehensive infrastructure work, the duration and nature of state support differ.

2. 2025 Financial Support Architecture: City-Based Categorization and Amount Analysis

The 2025 regulations have adopted an approach that categorizes cities according to living costs, acting on the reality that Turkey does not have a homogeneous rental market. This approach is critically important for the financial sustainability of transformation, especially in centers like Istanbul where real estate values diverge significantly from the national average.

2.1. Rental Assistance Matrix Segregated by Province

The table below presents in detail the support amounts determined by the Ministry of Environment, Urbanization and Climate Change for 2025, varying according to the type of rights holder. These data serve as a fundamental reference for rights holders to plan their cash flows during the transformation process.

City Category	Covered Provinces	Owner (Monthly Payment – TL)	Tenant (One-Time/Lump Sum – TL)	Limited Real Right Holder (One-Time – TL)
1st Category	Istanbul	8,000.00 TL	16,000.00 TL	40,000.00 TL
2nd Category	Ankara, Izmir, Antalya, Bursa	6,500.00 TL	13,000.00 TL	32,500.00 TL
3rd Category	Adana, Aydın, Balıkesir, Denizli, Diyarbakır, Erzurum, Eskişehir, Gaziantep, Hatay, K.Maraş, Kayseri, Kocaeli, Konya, Malatya, Manisa, Mardin, Mersin, Muğla, Ordu, Sakarya, Samsun, Şanlıurfa, Tekirdağ, Trabzon, Van	5,500.00 TL	11,000.00 TL	27,500.00 TL
4th Category	Other Provinces (Adıyaman, Afyon, Ağrı, Amasya, Artvin, Bilecik, Bingöl, Bitlis, Bolu, Burdur, Çanakkale, Çankırı, Çorum, Düzce, Edirne, Elazığ, Erzincan, Giresun, Gümüşhane, Hakkari, Iğdır, Isparta, Karabük, Kastamonu, Karaman, Kars, Kırıkkale, Kırklareli, Kırşehir, Kilis, Kütahya, Muş, Nevşehir, Niğde, Osmaniye, Rize, Siirt, Sinop, Sivas, Şırnak, Tokat, Tunceli, Uşak, Yalova, Yozgat, Zonguldak)	4,500.00 TL	9,000.00 TL	22,500.00 TL

Source: Ministry of Environment, Urbanization and Climate Change 2025 Data.

2.2. Deep Analysis Specific to Istanbul

Istanbul deserves special attention as the region where urban transformation is most intense and the rental market is most volatile. In the 2025 vision clarified by Minister Kurum’s statements, increasing the rental support for Istanbul from the 5,500 TL level to 8,000 TL corresponds to an increase of approximately 45%. However, comparing this increase with market realities is essential to understanding the financial burden rights holders will face.

Real estate valuation reports and market data show that average rental prices across Istanbul hover in the band of 15,000 TL to 25,000 TL. This situation reveals that the 8,000 TL support provided by the state can cover only one-third, or at best half, of the rental expense of an average household. This data indicates that an owner entering the “Urban Transformation” process will have to finance an additional housing cost of between 126,000 TL and 300,000 TL in total from their own budget (based on current rents) over an 18-month period.

2.2.1. Integration with Istanbul Metropolitan Municipality (IMM) Supports

Another point of note specific to Istanbul is the potential for simultaneous use of supports from local administration and central government. The Istanbul Metropolitan Municipality runs additional rental assistance programs for buildings determined to be “risky enough to collapse on their own” via a rapid screening test. Whether these IMM supports overlap with Ministry aid is a critical question for rights holders. In current practice, there are cases where those receiving Ministry aid can also benefit from IMM social aid under certain conditions, but the principle is that Ministry aid is the main financing item.

2.3. The Reality of Relocation Assistance for Tenants

The most vulnerable actors in urban transformation are undoubtedly tenants. Since they do not own property and cannot claim rights in the new building to be constructed, tenants only receive support to cover the cost of evacuation from their current residences. According to 2025 regulations, the amount paid to tenants in Istanbul is 16,000 TL, and 13,000 TL in other metropolitan cities.

Although this payment is titled “Rental Assistance” in the legislation, technically and in practice, it is “Relocation Assistance.” It is paid once (lump sum) and has no continuity. The cost of a relocation operation in Istanbul; when transportation fees (average 15,000-25,000 TL), deposit for the new house (one rental fee), real estate agent commission (one rental fee + VAT), and subscription transfer fees are added up, can exceed 75,000 TL. In this context, it can be analyzed that the 16,000 TL support provided to tenants covers approximately 20% of the total relocation cost, and tenants experience a serious economic trauma during the transformation process.

3. “Half Is On Us” Campaign: A New Paradigm in Urban Transformation

The “Half Is On Us” (Yarısı Bizden) campaign, initiated as a pilot in 2024 and institutionalized in 2025, is a hybrid model that separates from the classic rental assistance model and provides direct participation in the financing of transformation through grants and loans. This campaign is designed specifically to increase the speed of transformation in Istanbul and focuses on “construction assistance” rather than rental assistance.

3.1. Grant and Loan Balance: 2025 Updates

The campaign’s 2025 parameters have been revised in parallel with the rising construction cost index. The support package is structured to guarantee the completion of construction rather than giving cash to rights holders.

Financing Package for Residences:
- Grant: 875,000 TL. This amount is given by the state as non-refundable and has no repayment.
- Loan: 875,000 TL. This amount is a borrowing instrument offered with favorable maturity and interest conditions (interest-free or low-interest for the first year), with repayment starting 2 years after construction completion.
- Total Resource: A resource of 1,750,000 TL is allocated for one independent unit.
- Additional Relocation Support: Within the scope of the campaign, 125,000 TL of relocation support is provided to rights holders (owner or tenant vacating the apartment). This amount is much higher than the 16,000 TL tenant assistance in standard transformation projects or the monthly support given to owners, and is one of the most important elements increasing the campaign’s appeal.
Increased Supports for Workplaces:
- As of 2025, grant support provided for workplaces has been increased from 350,000 TL to 437,500 TL, and loan support has likewise been increased to 437,500 TL. Thus, a package of 1 Million TL has been created for workplaces, including a total construction budget of 875,000 TL and relocation support of 125,000 TL.

3.2. Contractor-Focused Payment System and Secure Construction Model

The most distinguishing feature of the “Half Is On Us” campaign is the way financial flow is managed. While money is deposited into the owner’s account in standard transformation loans, in this campaign, payments are made directly to the contractor firm. This system is designed to minimize the risk of “construction remaining unfinished” experienced in the past.

Payments are released through Emlak Katılım Bank or Ziraat Bank, indexed to progress at the construction site (Progress Payment Method):

Work Start (Establishment of Floor Easement): 30% of the total amount.
Completion of Rough Construction (Carrier System): 30% of the total amount.
Fine Workmanship (Plaster Stage): 30% of the total amount.
Occupancy (Building Use Permit): The remaining 10% portion.

This mechanism keeps the contractor’s motivation to finish the job alive while guaranteeing that the resource provided by the state is used only in construction production. Rights holders must integrate this payment schedule into their contracts when making agreements with the contractor.

3.3. Relationship Between the Campaign and Rental Assistance

A frequently asked question is whether beneficiaries of the “Half Is On Us” campaign can also receive monthly rental assistance. Current regulations and campaign guidelines indicate that due to the provision of high relocation support of 125,000 TL, additional monthly rental assistance will not be paid; this support aims to finance the “evacuation and relocation” process. However, due to the dynamic nature of campaign conditions, it is recommended that rights holders confirm this status during application. In the standard model (without grant support), those using only interest-supported loans cannot receive rental assistance, but since this campaign includes a grant element, the system is subject to its own special rules.

4. Types of Entitlement and Detailed Eligibility Criteria

Qualifying for rental assistance is not just about being a title deed holder, but about the nature of the “usage” relationship established with the property. Since Law No. 6306 bases assistance on “remedying grievances,” rental assistance is not paid to the owner in the event of the demolition of a vacant house.

4.1. Owners (Residence and Workplace Owners)

The basic condition for owners to receive rental assistance is that they must be actually residing in the building on or before the date the risky structure determination report is approved. Rental assistance is not paid for apartments bought for investment purposes and kept empty.

Proof of Residence: The Address Information Report obtained from the General Directorate of Population and Citizenship Affairs is essential. If the population registration appears elsewhere, the owner can prove actual use by submitting an electricity, water, or natural gas bill registered in their name for the last 3 months.
Multiple Properties Situation: If an owner has more than one apartment in the same risky building, they can receive rental assistance for only one apartment in which they reside. For other apartments, if there is a tenant, the tenant receives assistance; if empty, no assistance is paid.

4.2. Tenants

Tenants can apply directly without needing the property owner’s approval, provided they document that they live in the risky structure.

Critical Detail: If the tenant moves before the risky structure decision, the right to assistance is lost. Evacuation must take place after the risky structure process (notifications) has begun.
Document: A lease contract alone is not sufficient; residence must be substantiated with a utility bill or population registration.

4.3. Limited Real Right Holders and Lodging Residents

Limited Real Right Holders: Holders of usufruct rights (right of use) or habitation rights (right of residence) are victimized when evicted because they use the structure even if they do not own the property. Therefore, in Istanbul, they receive a high one-time compensation such as 40,000 TL.
Lodging Residents: Civil servants or workers living in public lodgings also have the right to receive relocation assistance, evaluated in tenant status, if they have to vacate the lodging due to the risky structure process.

5. Application Processes, Bureaucratic Steps, and Limitation Risks

Rental assistance is not a right defined automatically; active application by the rights holder and tracking of the process are required. Procedural errors or time lapses during the application process can lead to the complete loss of the right.

5.1. The 1-Year Rule and Statute of Limitations

The regulation strictly limits the application period: It is mandatory to apply within 1 year at the latest from the date the risky structure is vacated.

The evacuation date, not the demolition date, is essential.
The evacuation date is generally accepted as the date of address change (moving to a new address) made from the Population Directorate or the date the building’s electricity/water subscription is closed.
This 1-year period is a strict deadline; if the period is missed, the probability of winning even if a lawsuit is filed against the administration is low.

5.2. Application Authorities and Methods

Applications are made to the Provincial Directorates of Environment, Urbanization and Climate Change in the province where the property is located. In some provinces, this authority has been transferred to Municipalities (For example, in Istanbul, processes can be carried out through district municipalities).

Application via e-Government: As of 2025, most processes have been digitized. Rights holders can complete their applications by uploading the necessary documents to the system using the “Urban Transformation Rental Assistance Application” screen on the e-Government gateway.

5.3. Required Documents List (2025 Current)

The following documents must be complete for the application to be processed:

For Owners:

Application Petition (Obtained from the Institution).
Photocopy of Identity Card.
Title Deed Document and Current Land Registry Record of the Property (Can be obtained from the Takbis system).
Risky Structure Determination Report (Copy approved by the authorized firm).
Address Information Report (Shows residence in the risky structure).
IBAN number belonging to Ziraat Bank or Halkbank (Public bank requirement usually continues).

For Tenants:

Application Petition.
Photocopy of Identity Card.
Address Information Report or bill for the last 3 months registered in the Tenant’s name.
Address Document Showing Move to New Address (To prove evacuation).
Photocopy of Risky Structure Notification Letter.
Photocopy of Bank Passbook.

6. Process Management: Duration of Rental Assistance and Cessation Situations

How long rental assistance will be paid and under what conditions it will be cut is critical for financial planning.

6.1. 18 Months vs. 48 Months Distinction

Standard Risky Structure: In building-based transformations, the rental assistance period is 18 months. Even if construction finishes in 12 months, payment is not completed to 18 months; assistance may be cut when the occupancy permit is obtained and the owner moves into their apartment; however, general practice is to pay for 18 months. If construction is prolonged, payment is not made for more than 18 months.
Risky Area and Reserve Building: In large project areas declared by the Ministry, the rental assistance period can be extended up to 48 months (4 years) due to the length of expropriation and infrastructure processes.

6.2. Transfer of Property and Inheritance Status

Sale: An apartment in the risky structure process can be sold. However, rental assistance is tied to the “rights holder at the time of evacuation.” If the owner vacates the house and qualifies for rental assistance and then sells the house, they usually continue to receive the assistance (although there may be differences in practice, the compensatory nature of the assistance requires this). The new owner cannot receive rental assistance (since there is no loss of shelter) as they bought an empty house to be demolished, but they can benefit from interest support.
Death: If the rights holder passes away while receiving rental assistance, the assistance is not cut. Heirs continue to receive the remaining assistance installments in proportion to their inheritance shares by applying to the institution with a certificate of inheritance.

7. Strategic Decision Analysis: Rental Assistance or Interest Support?

Law No. 6306 forces rights holders to make a definitive choice: The state either provides rental assistance or provides interest support for bank loans. Both cannot be received simultaneously (Except for Half Is On Us). How should this choice be made in 2025 market conditions?

7.1. Interest Support Mechanism

The state applies an interest subsidy to the “Urban Transformation Loan” taken from contracted banks. For example, while the market interest is 4% monthly, the state covers 1% or 1.5% of this, and the citizen pays lower interest to the bank.

7.2. Financial Simulation

Scenario A (Rental Assistance): An owner in Istanbul receives 8,000 TL for 18 months. Total cash received: 144,000 TL. This is in the nature of a grant, it is not repaid.
Scenario B (Interest Support): The owner takes out a loan of 2,000,000 TL for construction. Thanks to the interest reduction provided by the state, the total interest burden they will pay over a 10-year maturity can be 500,000 TL – 700,000 TL less than a market loan.

Analysis: In a high inflation and high interest environment, interest support, which lowers the cost of borrowing, provides a much larger monetary advantage mathematically than rental assistance (144,000 TL). Especially for owners who will cover the construction cost with credit, interest support is the rational choice. However, for those who will not take out a loan, who will build with their own equity or in return for flats, or retirees who urgently need monthly cash flow, rental assistance is the correct option.

8. Conclusion and Future Projection

The 2025 urban transformation rental assistance and support package has taken on a more sophisticated structure sensitive to regional realities compared to previous years. Although the amounts of 8,000 TL (Owner) and 16,000 TL (Tenant) determined for Istanbul do not fully cover rental prices in the market, the 1.5 Million TL+ grant+loan and 125,000 TL relocation support offered by the “Half Is On Us” campaign play a key role in financing the transformation.

The most fundamental strategy rights holders must pay attention to while managing the process is to make applications within the 1-year statute of limitations and to document the residence condition strongly with bills. For tenants, the system is still focused only on “relocation” and does not fully subsidize the cost of starting a new life; therefore, it is essential for tenants to make financial preparations before evacuation.

In the coming period, the management of 48-month assistance processes, especially in reserve building areas, and the spread of hybrid models (grant+loan) are expected. Urban transformation is not just the renewal of buildings, but the process of ensuring the financial sustainability of property, and the 2025 regulations are a significant step taken in this direction, despite some shortcomings.

Our Latest Articles

« Previous Post