What is a Reserve Building Area in Urban Transformation?

 What is a reserve building area in urban transformation, how is it declared, what are the rights of the property owners, what is the difference between a reserve building area and a risky area, and what are the legal avenues and appeals under Law No. 6306?

---

The Concept of Reserve Building Area in Urban Transformation

In urban transformation, reserve building areas refer to areas designated for use in transformation projects to be carried out under Law No. 6306 on the Transformation of Areas Under Disaster Risk. These areas may be determined by the Housing Development Administration, upon the request of the relevant administration, or ex officio by the Ministry. With the amendment of Law No. 7471, the phrase "as a new settlement area" in the definition of reserve building areas in Law No. 6306 was removed from the text of the article; this change is important in ensuring that the concept of reserve building areas is not seen as limited only to vacant or new settlement areas.

The concept of reserve building areas holds a highly strategic function in urban transformation law. This is because reserve building areas can be used to create housing and workplaces for residents of risky areas or buildings, to finance transformation projects, to establish new settlements, to create socio-technical infrastructure, and in some cases, to implement income-generating projects. The Implementing Regulation stipulates that within reserve building areas, healthy and safe living environments conforming to engineering and architectural standards can be established; reserve housing and workplaces for residents of risky areas and buildings can be constructed; income-generating projects can be implemented; and socio-technical and cultural infrastructure and environmental arrangements can be made.

Therefore, declaring an area a reserve development zone is not merely a technical zoning process. It is a comprehensive administrative action that directly affects property rights, property usage, zoning plan decisions, parceling procedures, eviction and demolition processes, ownership relationships, and the economic balance of the urban transformation project.

Why are Reserve Development Areas Declared?

The primary purpose of declaring a reserve building area is to ensure the healthy implementation of transformation projects under Law No. 6306. Relocating people living in risky areas or buildings to safe structures, constructing new housing or workplaces, supporting the financing of transformation projects, creating resilient settlements in the face of disaster risks, and establishing the necessary socio-technical infrastructure are among the main objectives of declaring a reserve building area.

Reserve building areas can serve two different functions in practice. Firstly, they can provide alternative housing or workplaces for rights holders who are forced to leave their current homes due to risky buildings or risky areas. Secondly, they can facilitate the development of new projects that will generate income and revenue for transformation projects. The explicit inclusion of income-generating applications in reserve building areas in the Implementation Regulation indicates that these areas can be considered not only as residential areas where rights holders will relocate, but also as part of the transformation economy.

However, this broad authority does not mean that the administration has unlimited discretionary power. The declaration of a reserve building area must be based on public interest, be in accordance with the purpose of Law No. 6306, be compatible with planning principles, and constitute a proportionate interference with property rights. Otherwise, the declaration of a reserve building area may be subject to an annulment lawsuit in administrative courts.

The Difference Between Reserve Development Area and High-Risk Area

In urban transformation projects, reserve building areas and risky areas are often confused. However, these two concepts are legally different. A risky area is an area that has been shown through technical data to pose a risk of loss of life and property due to its soil structure or existing buildings, and is determined according to the relevant procedure. The main focus in declaring an area as risky is the existing risk of disaster in the area.

In the case of reserve building areas, the primary focus is on creating space to be used in transformation projects under the Law. Reserve building areas do not necessarily have to be high-risk areas or contain risky structures. The removal of the phrase "as a new settlement area" in the amendment to Law No. 7471 has strengthened the debate on whether properties located in existing settlements can also be designated as reserve building areas.

This distinction is crucial in practice. If a property is located within a high-risk area, the technical report and high-risk area procedure regarding the area's risk must be examined. If a property has been declared a reserve development area, then the specific transformation project for which the area will be used, the justifications stated in the application file, the planning objective, and the consequences for the property owners must be further evaluated.

How are Reserve Development Areas Determined?

According to the Implementing Regulation of Law No. 6306, a reserve building area is determined by the Ministry upon the proposal of the Presidency, based on a file containing a coordinated cadastral map showing the size of the area, a satellite image or orthophoto map, a list of public properties in the area, a justification report based on observational data for reserve building areas to be used as new settlement areas, and other information and documents requested by the Presidency. TOKİ or the administration may also request the determination of a reserve building area from the Presidency with a file containing these documents.

Natural persons or private legal entities may also request that their properties be designated as reserve development areas. However, there is an important condition here: Except for the Ministry's affiliated, related, and associated institutions and their subsidiaries, in order for properties owned by natural persons or private legal entities to be designated as reserve development areas, they must consent to the transfer of ownership of thirty percent of the land area to the Presidency, or provide the Presidency with the equivalent amount of value to be recorded as revenue in the transformation projects special account.

This 30 percent requirement is one of the most critical legal thresholds for the designation of privately owned properties as reserve development areas. If the owner or investor wants their property designated as a reserve development area, they must evaluate the economic and property law consequences of this condition beforehand. Otherwise, disputes regarding property transfer, payment, project sharing, and ownership rights may arise after the designation of the reserve development area.

The Impact of the Designation of a Reserve Development Area on Property Owners

The fact that a property is located within a reserve development area does not mean that the owner's property rights have ceased. However, since the property is now located in an area that can be subject to transformation applications under Law No. 6306, the owner's possibilities for disposing of and using the property may change. These may include changes to the zoning plan, parceling, consolidation, subdivision, relinquishment, creation of new land, registration in the land registry, reconstruction, land-for-construction agreements, or revenue sharing agreements.

Applications in reserve building areas, as in risky areas, can also affect the decision-making processes of owners and stakeholders. With the regulation amendment dated 2026, it was stipulated that in risky areas and reserve building areas, in the phase or block where the application is made, without requiring the demolition of existing buildings, decisions regarding parcel consolidation, individual or block-based application, subdivision, partition, relinquishment, creation, registration in the land registry, reconstruction, sale of shares, construction in exchange for floors or revenue sharing can be made by a simple majority of the stakeholders in proportion to their shares.

This system aims to prevent transformation projects from being completely blocked by small minorities. However, a simple majority decision does not mean that the rights of dissenting property owners will be disregarded. Property owners who do not agree with the decision must be notified of the proposal containing the decision and agreement terms, shown where the proposal can be examined, and clearly informed that if they do not accept it within a certain period, the process of selling their land shares may be initiated.

Zoning Plan and Project Process in the Reserve Development Area

One of the most important stages after an area is declared a reserve building zone is the zoning plan and project process. Identifying a reserve building zone alone does not finalize the building conditions. The intended use of the area, the floor area ratio, building height, social amenities, road connections, green spaces, parking solutions, and phasing decisions are all clarified through the zoning plan and urban design project.

The Implementation Regulation stipulates that in risky areas and reserve building areas, plan proposals can be prepared together with an urban design project; and that evaluation can be made together with the current plans of the planning area and its immediate surroundings, information and documents showing the existing situation, and the opinions of the relevant institutions.

Therefore, in an area declared as a reserve development zone, property owners must follow not only the declaration decision but also the subsequent zoning plan, plan notes, parceling plan, urban design project, and ownership regulations. This is because the real economic and legal consequences often emerge from the planning and implementation processes carried out after the declaration of the reserve development zone.

Evacuation and Demolition Process in the Reserve Building Area

Declaring an area a reserve building zone does not automatically mean immediate evacuation and demolition. However, evacuation, demolition, new construction, relocation of property owners, or removal of existing structures may occur as part of an implementation project within the reserve building zone. At this point, it is important to determine which properties will be demolished, whether the structures are at risk, whether there is an area-based implementation decision, and what action the administration is basing its decision on.

With the regulatory amendment dated 2026, standard forms and announcement methods have gained importance in notifications regarding evacuation and demolition. The regulatory amendment has detailed the methods used in the evacuation and demolition notification processes for risky buildings, risky areas, and reserve building areas, including announcements by the local headman's office, e-Government notifications, and the preparation of official records.

From the property owner's perspective, the most important point is determining the basis of the decision that orders the eviction or demolition. Is the decision based on a risk assessment of the building, a reserve building area designation, a zoning plan implementation, or is it a matter of expropriation or purchase? This distinction directly affects the legal avenues and timeframes for filing a lawsuit.

Ownership Rights in the Reserve Building Area

In reserve building areas, ownership rights vary depending on the nature of the project. In some projects, the reserve building area may be used to provide housing or workplaces for people evacuated from other risky areas or risky buildings. In other projects, the inclusion of the existing owners of the land in the project through on-site transformation, acquisition of independent units, compensation, exchange, or another ownership model is considered.

The fundamental issue here is whether the current value of the property and the rights the owner will acquire upon completion of the project are fair and proportionate. If the owner loses their property but does not receive an independent unit, compensation, or rights commensurate with its true value, a serious dispute regarding property rights may arise.

Within the scope of Law No. 6306, the Presidency has the authority to lease and sell the properties that come under its control under the law, excluding those properties to be given to the rights holders, to purchase ready-made housing or workplaces, and to carry out income-generating activities in reserve building areas. These authorities demonstrate the strong link between rights holders and the project economy in reserve building areas.

Does a Reserve Development Area Eliminate Property Rights?

The designation of a reserve development area does not, by itself, mean that the title deed has been transferred to the administration. However, this declaration can lay the groundwork for subsequent actions that may interfere with property rights. Plan changes, parceling, purchase, exchange, expropriation, sale of land shares, eviction, demolition, or determination of ownership rights can directly affect the owner's property rights.

Therefore, when evaluating the declaration of a reserve development area, not only the name of the decision but also its actual and legal consequences should be considered. For a property owner, the following questions are important: Is the function of my property changing? Is my right to build being reduced? Is my property being allocated to a public area? Will I be given an independent unit or will I receive compensation? Am I obligated to participate in the project? Will my share of the land be sold if I do not agree with the decision? What is the statute of limitations for litigation?

Even if the declaration of a reserve development area serves the public interest, the interference with property rights must be proportionate. A reasonable balance must be struck between the administration's transformation objective and the owner's property rights. If this balance is not established, the declaration of a reserve development area and the related implementation procedures may be challenged in administrative courts.

Can a lawsuit be filed against the declaration of a Reserve Development Area?

Yes. Since the declaration of a reserve development area is an administrative act by virtue of its legal nature, it can be subject to an annulment lawsuit in administrative courts if the conditions are met. When filing a lawsuit, the following should be evaluated first: the date the act was learned or notified, the method of announcement, the legislation on which the act is based, the authority that issued the act, and the specific loss of rights that occurred as a result of the act.

The time limits for filing lawsuits against administrative actions established under Law No. 6306 may differ from general administrative lawsuit time limits. Therefore, before filing a lawsuit against decisions regarding reserve building areas, plans, parceling procedures, eviction-demolition procedures, or ownership rights, it is necessary to separately examine when each action was learned and what time limit it is subject to.

The grounds for the lawsuit must be substantiated. In a lawsuit filed against the declaration of a reserve development area, the following claims may be made: lack of public interest, insufficient justification for the action, use of the area for purposes other than those stipulated by Law No. 6306, lack of technical and objective reports, violation of planning principles, disproportionate interference with property rights, failure to consider the balance of social and technical infrastructure, ambiguity in the ownership structure, illegality regarding the 30% private ownership requirement, or misuse of discretionary power by the administration.

Should the Reserve Development Area and the Zoning Plan Case be considered together?

The declaration of a reserve development area and the amendment of the zoning plan are different administrative procedures. The declaration of a reserve development area includes the area within the scope of transformation applications under Law No. 6306. The zoning plan, on the other hand, determines how the area will be developed, which functions will be allocated to it, and the building conditions such as floor area ratio and building height. Therefore, in most cases, it is necessary to examine not only the declaration of the reserve development area but also the subsequently approved zoning plan and parceling procedures.

Even if the declaration of an area as a reserve development zone is legally valid, the zoning plan created for that area may be contrary to public interest, urban planning principles, or planning guidelines. Conversely, even if the zoning plan appears technically appropriate, the basis for the declaration of the area as a reserve development zone may be debatable. Therefore, when formulating a litigation strategy, the entire chain of procedures should be examined.

The most common mistake made by property owners is focusing solely on the title deed or the actual demolition process, thus missing the deadlines for public review and litigation. However, in the case of reserve building areas, the most crucial processes are often the zoning plan, parceling, ownership rights, and the implementation project. If these processes are not followed up on time, the possibility of seeking redress later may weaken.

Simple Majority and Share Sale in Reserve Development Area

In reserve development areas, it is possible to make certain transformation decisions with a simple majority of shareholders in proportion to their shares in the development phase or block where the project is being implemented. These decisions may include transactions such as consolidation of parcels, implementation on a block basis, subdivision, partition, relinquishment, creation, registration in the land registry, reconstruction, sale of shares, land-for-construction or revenue sharing.

Property owners who do not agree with the decision should be notified of the offer containing the terms of the decision and agreement. Notification can be made electronically, through a notary, or, in the case of risky areas and reserve building areas, by posting the relevant form at the local administrative office for 15 days. If the offer is not reviewed or accepted within 15 days of notification, the property share may be sold by auction at a price not less than the market value. If the sale does not take place, in the case of risky areas and reserve building areas, the purchase of these shares by the Presidency, Administration, or TOKİ (Housing Development Administration) that will carry out the transformation project may be considered, with the market value being paid by them.

This process can have extremely serious consequences for the property owner. Because a property owner who does not agree with the decision may face the risk of losing their share in the property. Therefore, the simple majority decision, the notification of offers, the 15-day period, the determination of the market value, and the auction process in the reserve development area must be subject to legal scrutiny.

Risks in Implementing the Declaration of a Reserve Development Area

One of the most significant risks in designating areas as reserve development zones is the ambiguity surrounding the purpose of the designation. Legal disputes arise if it is unclear why the area was declared a reserve development zone, which risky area or transformation project it is connected to, for which rights holders it will be used, the position of existing owners within the project, and the rationale behind the planning.

The second risk is the uncertainty that may arise for property owners if existing settlements are declared reserve development areas. Following the amendment to Law No. 7471, the removal of the phrase "new settlement area" has made it more likely that existing settlements could also be designated as reserve development areas. This situation could increase disputes over property rights, eviction/demolition, ownership rights, and property valuation.

The third risk is the increase in density through zoning plan changes after the designation of a reserve development area. Decisions regarding increased building density, high-rise construction, changes in function, or revenue-generating projects may be subject to annulment lawsuits if they are not compatible with public interest and urban planning principles.

The fourth risk is that the economic impact of the 30 percent transfer or payment requirement for privately owned properties in the reserve development area has not been adequately analyzed. This requirement directly affects the feasibility of the project and the ultimate rights of the property owners.

What should property owners do in reserve development areas?

Property owners with real estate within the reserve development area should first ascertain the basis of the decision. On what date, by which authority, and for what reason was the area declared a reserve development area? What are the maps and coordinates attached to the decision? Does the property actually fall within these boundaries? Has a zoning plan been prepared for the area? Has the plan been put on public display? Has a parceling process been carried out? Has a rights assessment been conducted?

Secondly, the owner should check the title deed and any encumbrances. If there are mortgages, liens, usufruct rights, annotations, or other restrictions on the property, it should be examined how these rights will be protected in the reserve development area application.

Thirdly, one should not remain passive in the face of implementation decisions. If there is a simple majority decision, a notification of offer, a sale of land shares, a valuation of market value, a plan change, or an eviction/demolition process, the deadlines must be carefully monitored.

Fourthly, the valuation and ownership process should be reviewed with the support of technical experts. The owner should verify the true value of their property, their development rights, the rights they will acquire after the project, and, if applicable, the sale price of their land share through independent reports.

Conclusion

In urban transformation, the reserve building area is an important legal concept determined for use in transformation applications under Law No. 6306, and it directly affects the planning, ownership, rights, and project financing aspects of the urban transformation process. Reserve building areas can be used for purposes such as producing housing and workplaces for people relocated from risky areas or buildings, creating healthy and safe living environments, establishing socio-technical infrastructure, and implementing income-generating activities.

The removal of the phrase "as a new settlement area" from the definition of reserve building areas through the amendment to Law No. 7471 is a significant change that broadens the scope of application of the concept. Therefore, the declaration of a reserve building area should now be considered not only as an action with serious legal consequences for vacant and newly developed areas, but also for existing settlement areas.

The designation of a reserve development area does not automatically nullify a property owner's title deed; however, it can serve as the basis for subsequent actions such as zoning plans, parceling, ownership rights, eviction, demolition, purchase, exchange, sale of land shares, and new development decisions. Therefore, property owners should closely monitor the reserve development area decision, plans, implementation projects, simple majority decisions, tender notifications, and valuation processes.

In conclusion, the reserve building area is a powerful tool for urban transformation; however, this tool must be used in accordance with the law. Applications of the reserve building area designation without considering public interest, technical justification, planning principles, property rights, proportionality, guarantee of ownership, and fair valuation principles can create serious administrative litigation risks. Therefore, it is of great importance for property owners with real estate within the reserve building area to carefully monitor the process from the date of the decision's announcement, to have technical and legal assessments carried out, and to file objections or lawsuits within the prescribed time limit to avoid any loss of rights.