Kanal Istanbul and urban renewal projects
What does buying a new unit in an urban renewal project under Law 6306 mean? Which exemptions actually apply? And where does the Kanal Istanbul project stand? Neutral information backed by official sources, after which we show you the projects currently available, on request.
This page is general information, updated to October 2026, and is not legal or tax advice. Whether any exemption applies depends on the status of the property, the seller and the date of the building permit.
What is urban renewal?
Urban renewal (Kentsel Dönüşüm) in Türkiye is carried out mainly under Law No. 6306 of 2012 on the transformation of areas at risk of disaster. Its aim is to demolish buildings that are not earthquake-safe or have reached the end of their economic life, and to rebuild them to modern standards.
The law defines three cases: a “risky building” (riskli yapı), whose risk is established by a technical report and annotated in the land registry; a “risky area” (riskli alan), declared by presidential decision; and a “reserve building area” (rezerv yapı alanı), designated by the ministry for use in renewal projects. Since the 2023 amendment (Law 7471), the “Urban Renewal Presidency” (Kentsel Dönüşüm Başkanlığı) holds a large part of these powers, and owners’ decisions in a risky building are taken by an absolute majority of shares.
The “Yarısı Bizden” programme (“half is on us”)
A government programme specific to Istanbul, launched in 2023, to support owners who renew their buildings: a grant of 875,000 lira, a loan of 875,000 lira and moving assistance of 125,000 lira per flat (as updated in April 2025), extended until 31 Dec 2027. This support is for the rights holders in the old building and does not cover a new buyer of a unit in the project.
Sources: Text of Law 6306 (mevzuat.gov.tr) · Ministry of Environment and Urbanisation: Yarısı Bizden · Anadolu Agency: extension to 2027.
Who benefits from the Law 6306 exemptions, and from what exactly?
Many advertisements say that “every buyer in an urban renewal project is exempt from title deed fees and taxes”. This is not accurate. The exemption depends on the type of transaction and on who the seller is, not on the project alone.
| Case | Who benefits | What is exempt | What is not exempt / conditions | Basis |
|---|---|---|---|---|
| The first sale of a new unit by the implementing contractor (or by the ministry, the Renewal Presidency, TOKİ, the local administration or real estate investment companies, GYO) | Any buyer, including a foreign buyer, provided the seller is the contractor named in the building permit or one of these bodies | Title deed fee (tapu harcı) on the sale, notary fees, municipal fees, stamp duty and revolving fund fees (döner sermaye) | The first sale only. It does not cover VAT (which has a separate reduced rate), the annual property tax (emlak vergisi) or any later sale | Law 6306, Article 7/9-c · Tax opinion: the contractor named in the permit |
| A unit sold to a third party by an original owner (rights holder) from their share | No exemption for the buyer in this transaction | — | The title deed fee is due. Türkiye's Council of State ruled (2023) that sales by original owners to third parties fall outside the exemption | Council of State, 9th Chamber, 30 Oct 2023 |
| A resale (second sale), or a sale by a company not registered as the contractor in the building permit | No exemption | — | The usual fees apply: a title deed fee of 2% for the buyer and 2% for the seller on the declared value | Tax opinion · Revenue Administration: title deed fee |
| Owners and tenants (of at least one year) in the risky building | The rights holders in the old building | The above fees on contracts and on the transfer of the new units to them, banking transaction tax on renewal loans, and an exemption from municipal fees for new floor area up to 1.5 times the existing area | Linked to the renewal transactions themselves, as set out in the law | Law 6306, Articles 7/9-a and 7/10 |
| VAT on flats in 6306 projects | Delivery of the flat to the rights holder or to a third party within a renewal project | Not an exemption but a reduced rate: 1% on the part up to 150 m² net | 20% on the part above 150 m² and on shops and offices. Outside 6306 projects the rate is 10% up to 150 m². Depends on the date of the building permit and the scope of the project | Revenue Administration: rate table · Amendment to the VAT implementing regulation |
| A foreign buyer not resident in Türkiye (an exemption separate from Law 6306) | The first delivery of a completed unit by the party that built it, with the price transferred in foreign currency | VAT exemption under Article 13/i of the VAT Law | At least 50% transferred before the invoice and the rest within one year. Selling within 3 years requires paying the tax with interest before the title deed is transferred | General Directorate of Land Registry (TKGM) |
The table summarises the official texts and the tax opinions published up to October 2026. Whether the exemption applies depends on the details: a “risky building” annotation in the land registry, the seller named in the building permit, whether the sale is the first one, the date of the permit and the net floor area.
You bought a new unit in an urban renewal project: what does that mean for you?
- If you bought directly from the contractor named in the building permit and this was the first sale of the unit, the sale is exempt from the title deed fee, notary and municipal fees and stamp duty under Article 7/9-c.
- If you bought from an original owner who received the unit in exchange for their old building, or from a previous buyer, this exemption does not apply and the usual title deed fee is paid.
- VAT is not covered by the Law 6306 exemption. In its projects a rate of 1% applies to the first 150 m² net of the flat, and the flat may be fully exempt if you are a non-resident foreigner and meet the conditions of Article 13/i.
- Other costs remain yours: the annual property tax, the valuation report, sworn translation and the lawyer’s or agent’s fees.
- When buying off-plan: the law allows the contractor to sell its share gradually in line with construction progress and with permission from the local administration (Article 6/13). Always ask about the construction progress and the sale permission.
What we check before offering you a unit
- A “risky building” (riskli yapı) annotation, or the boundary of a “risky / reserve area”, in the land registry.
- That the seller is the contractor named in the building permit and that the sale is the first sale.
- The date of the building permit and the net area of the unit (to determine the VAT rate).
- The construction progress and the sale permission, and whether completion insurance or the required securities are in place.
Eyüpsultan · Arnavutköy · Halkalı
Documented facts about urban renewal activity in three areas we work in. These facts do not mean that units are available for sale there.
Eyüpsultan (Eyüpsultan)
Risky areas have been declared here, including the Akşemsettin and Çırçır area (24.45 hectares, declared on 5 Feb 2018), with a project licensed since 2022 comprising 703 homes and 12 commercial units, under construction since 2024. In addition, 4.6 hectares in the İslambey neighbourhood were designated a “reserve building area” on 16 May 2022. Sources: Istanbul Metropolitan Municipality · Çırçır area · Eyüpsultan Municipality.
Arnavutköy (Arnavutköy)
Home to the “Yenişehir Reserve Building Area”, linked to the planning of Kanal Istanbul. Its plans are approved in phases, most recently amended in the Boyalık and Baklalı neighbourhoods (June 2026). In Dursunköy, the state housing developer (a listed GYO) is building a housing project of 1,027 units (valuation report dated 31 Dec 2025). Sources: Istanbul directorate · 2026 amendment · The state housing developer's valuation report. See also Yenişehir land.
Halkalı (Halkalı, Küçükçekmece)
The Küçükçekmece plans, including the Halkalı Merkez neighbourhood, have been amended to add specific provisions on risky buildings. On 19 Jun 2026 the Gayrettepe – Istanbul Airport – Halkalı metro line (69 km) was completed, and Halkalı station connects to Marmaray, the high-speed train and metro lines. The announced journey time from Halkalı to the airport is about 30 minutes. Sources: Istanbul Metropolitan Municipality · Presidential Communications Directorate.
Note: the Istanbul Financial Centre (İstanbul Finans Merkezi) is on the Asian side (Ümraniye/Ataşehir), not in Halkalı. Source: Istanbul Governorate.
What is the Kanal Istanbul project?
Kanal Istanbul (Kanal İstanbul) is a proposed government project for an artificial waterway on the European side, linking the Black Sea to the Sea of Marmara along the Küçükçekmece – Sazlıdere – Durusu corridor. According to the Ministry of Transport it is 45 km long, at least 275 m wide at the bottom and about 21 m deep.
As of October 2026, excavation of the canal itself has not started. What has been done so far is the plans, the approvals and some related infrastructure (bridges, roads and housing). In an official reply dated 13 Oct 2026, the ministry said the aim is to hold the tender and start construction “as soon as possible”, without giving a date or financing details.
What is planned, and what has been built?
- Approved: the environmental impact report (January 2020), the 1/100,000 environmental plan, and the zoning plans for phases 1–3 of 7 in Arnavutköy and Başakşehir.
- Built: the foundation stone of the Sazlıdere bridge (June 2021) and the completion of the Halkalı – airport metro line (June 2026), which is included in the plans as part of the transport network.
- Not done: excavation of the canal, the main construction tender, and an announced financing plan.
Sources: Ministry of Transport (AYGM) · Ministry of Environment and Urbanisation 2020 · BirGün: ministry reply of 13 Oct 2026.
Documented milestones
- 3 Aug 2017
- 23 Dec 2019
First environmental plan
Approval of the 1/100,000 environmental plan amendment for the reserve building area on the European side, later revised after objections.
CSB - 17 Jan 2020
- 29 Jun 2020
Phases 1–3
Approval of the zoning plans for three of seven phases (13,364 hectares) in Arnavutköy and Başakşehir.
CSB - 26 Jun 2021
- 5 Jan 2023
Phase 1 amendment
Approval of the amended plans for the first phase of the Yenişehir reserve area.
CSB İstanbul - 23 Dec 2024 · 4 Feb 2025
Court dispute
The 5th Administrative Court of Istanbul annulled the environmental plan amendment; the Regional Administrative Court then lifted that ruling.
CSB İstanbul - 19 Jun 2026
Halkalı – airport metro completed
Opening of the final section of the Gayrettepe – airport – Halkalı line.
İletişim Başkanlığı - 13 Oct 2026
No tender date yet
The ministry: the aim is to tender and start construction “as soon as possible”, with no date or financing announced.
BirGün
What does this mean for an investor?
What is established
- Actual transport improvements in the area, such as the Halkalı – airport metro line, open since June 2026, which do not depend on the canal being dug.
- Government and semi-government housing projects already under way in the Yenişehir area, such as the state housing developer’s projects in Dursunköy.
Risks and uncertainty
- There is no announced date for the canal tender and no financing plan, and officials' statements have varied over the years.
- The plans are amended in phases and are subject to objections and lawsuits, and the zoning status of a given plot may change.
- Published environmental objections (the Sazlıdere reservoir, Lake Terkos and Lake Küçükçekmece), and debate about the Montreux Convention.
- Off-plan purchases in renewal projects depend on construction progress and sale permission, and delivery may be delayed.
- Resale liquidity in new areas may be lower than in established neighbourhoods.
We promise no return or increase in value, and we do not assume that Kanal Istanbul will be built, or when. A purchase decision should make sense even if the canal is never built. Sources: Turkish Minute 16 Oct 2026 · CSB İstanbul.
Current projects are shown on request
We do not publish projects or prices here before verifying them and being authorised to market them. The cards below are illustrative examples of the kind of information we provide for each project, not real projects.
Illustrative example / sample
Renewal of a risky building in an established neighbourhood
What we will explain: the “risky building” annotation in the land registry, the contractor in the permit, the construction progress and sale permission, the net area and the VAT rate. Price on request.
Illustrative example / sample
A project in a declared risky area
What we will explain: the decision declaring the area, the implementing body (TOKİ, the state housing developer, a municipality or a private contractor), the delivery schedule and the exemption conditions. Price on request.
Illustrative example / sample
A property in the Yenişehir reserve area
What we will explain: the plan in force (Imar), the phase, any known objections or lawsuits, and the difference between what has been built and what is planned. Price on request.
To request the list of projects actually available today, with their documents, contact us on WhatsApp or through the contact form.
Ask about the projects available now
We will send you the projects actually available today in urban renewal or in the canal area, with the exemptions that apply to them after verification.
Official sources and references
- Kanun 6306 (mevzuat.gov.tr)
- GİB · KDV oranları
- GİB · KDV GUT Seri 41
- GİB · Tapu harcı
- TKGM · KDVK 13/i
- Danıştay 9. D. 2023/4127
- ÇŞİDB · Yarısı Bizden
- İBB · Eyüpsultan riskli alan
- Eyüpsultan Bel. 2022/147
- ÇŞİDB İstanbul · Yenişehir RYA
- Valuation report for the Dursunköy housing project (state housing developer)
- İBB · Küçükçekmece plan notu
- İletişim Bşk. · Halkalı–Havalimanı metro
- UAB AYGM · Kanal İstanbul
- ÇŞİDB · Kanal planları 2020
- BirGün · 16 Oct 2026
- Turkish Minute · 16 Oct 2026
Sources last reviewed: 18 October 2026. The full list, with what each source supports, is kept in the project’s internal sources file.
Legal notice: the exemptions and tax rates mentioned depend on the specific case (the status of the property in the land registry, the identity of the seller, whether the sale is the first one, the date of the building permit, the net area and the buyer’s residence) and may change when legislation is amended. The company lawyer has reviewed these procedures and sits down with every client to discuss their situation and explain the steps. This page contains no promise of any investment return and does not assume that the Kanal Istanbul project will be completed.