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Urban Transformation & Renewal

Our company, ARVES Gayrimenkul Değerleme ve Danışmanlık A.Ş., has been authorized in the Real Estate Valuation field by the Capital Markets Board by virtue of the decree of 10.12.2012 and No. B.02.6.SPK.0.17.00-415.01 [ARVES-…]-566), and by the Banking Regulation and Supervision Agency by virtue of the decree of 10.04.2013 and No. 43890421-140-118-9264. Pursuant to the aforementioned authorizations, our company provides professional valuation and consultancy services in the field of urban regeneration within the scope of risky structure valuation, new law amendments and arrangements and urban renewal / transformation, in accordance with Article 15 of the Application Regulation of the Law No. 6306.

As is stated by everyone, the Law on Urban Transformation or the Law on Transformation of the Areas under Disaster Risk No. 6306 was entered into force on May 30, 2012 and its Regulation on August 4, 2012, after being published in the Official Gazette.

Urban transformation / renewal means the elimination of problems that disrupt the texture of a city and the creation of habitable cities. In the squatter transformation / urban renewal projects, it is aimed that “the illegal construction areas and the economically collapsed areas within the city are restructured with the scientific and health standards in a way that shall eliminate all possible natural disasters risks by introducing all the urban and social reinforcement services.”

Processes in the Squatter Transformation / Urban Renewal Projects;

  • Process of carrying out studies for the best and most efficient use in the region

  • Process of preparation of the justified reports

  • Process of determination of majority property and entitlement

  • Process of floor number analysis, usage analysis, function analysis

  • Process of carrying out valuation studies

  • Process of reconciliation and research of the project and contractor requirements

  • Contractor selection process

  • Follow-up process of the necessary procedures under the law

In the urban transformation projects, in the process of valuation studies, the following services are provided;

  • The current state value of the transformation area and the value to emerge following the transformation,

  • The physical values in the transformation area and the cost of the physical structure to emerge following the transformation,

  • Efficiency analysis of the urban transformation based on the current sector knowledge,

  • Adaptability to the environment and the value-based effect of the transformation area on the environment,

  • Determination and valuation of the beneficiaries and their immovables (land, building, outbuilding etc.)



     

Urban renewal / transformation requires agreement between the property owners, apartment managements and apartment building owners, who want to renew their apartment buildings / structures under a risky structure status, and the valuation reports which provide the balance of boon-burden (Real Value and Justice).  In this context, valuation and consultancy services are offered to many individual owners, apartment building owners and apartment building managements in the process of urban renewal / transformation.

  • Within the scope of urban renewal / transformation, the apartment building owners / beneficiaries, who CANNOT AGREE on the risky structure model, need the real estate evaluation report to submit it to the Ministry of Environment and Urbanization.

  • As part of the urban renewal / transformation, the owners who do not need the Ministry’s intermediary shall require a real estate valuation report including the CURRENT STATUS VALUE, LAND SHARE VALUE and GOODWILL VALUATION.

  • Following the agreement with the contractor or the contracting construction company, all property owners can valuate their real estate rights based on the valuation report prepared.

We provide coordination or valuation and consultancy services for all or part of the project such as determination of the zoning status given for the renewal of the problematic areas and/or risky structures in the city, determination of property ownership, performing goodwill studies scientifically / with mathematical formulas according to the previous and new project, drawing the most efficient new projects in accordance with the zoning status, overlap/analysis of the new project with the current situation, helping in the ministry, land registry and municipality processes, in the selection of contractors.

Under the Urban Transformation Law (the Law on the Renewal of Disaster Risk Structures No. 6306), the old, earthquake-fragile, RISKY structures that have completed their economic life are transformed into earthquake-resistant, more valuable, habitable structures with social areas just when a property owner applies to the Licensed Companies of the Ministry of Environment and Urbanization and make the CMB and BRSA’s Licensed Valuation Companies prepare the valuation report providing ensuring the boon-burden balance (Real Value and Justice). While the structures are renewed, the Urban Transformation Loans offers the possibility of benefiting from the municipality, title deed, notary fee exemptions and tax advantages, in addition to the Urban Transformation Rent Allowance.

APPLICATION REGULATION OF THE LAW NO. 6306

ARTICLE 15/A - (Annex: RG-2/7/2013-28695)

(1) The decree taken by at least two-thirds of the shareholders on the re-evaluation of the immovable properties that have turned into lands after the demolition of the risky buildings, the terms of the agreement, and the value of the risky structure determined by the licensed valuation institutions registered in the Capital Markets Board shall be notified to the Directorate.

(2) A Price Determination and Sales Commission consisting of at least three persons, as one and two members, shall be formed in order to determine the fair value of the land shares belonging to the independent sections of the property owners, who do not participate in the decree taken with at least two thirds majority, and to realize the sale process. The fair value is determined by this Commission by taking into account the value of the risky structure as determined by the licensed valuation institutions registered in the Capital Markets Board upon the request of the property owners.

  • The property owners should act unanimously for the implementation process on what to do with the risky structures following their demolition.

  • In the event of lack of unanimity; the value of the risky structure is determined by the licensed valuation company authorized by the Capital Markets Board. This report is distributed to the property owners, any of the property owners calls all the property owners to the meeting, and the risky building owners shall decide with at least 2/3 majority in proportion to the shares they are entitled to.

  • The decree taken by at least two thirds majority is communicated to those, who do not agree with the decree and did not participate in the meeting of the flat owners board through a notary public, and in this communique, it is notified that in case this decree is not accepted within fifteen days, the land shares related to the independent sections shall be sold to the other agreeing stakeholders by auction against a fee not less than the fair value to be determined by the Ministry, and if they cannot sold to the stakeholders in this manner, these shares shall be registered in the name of the Treasury on the condition that the market value is paid by the Ministry.

Processes in Building Based Transformations;

  • Learning the zoning status,

  • Preparing the project-draft project suitable for the zoning status,

  • Presenting the works to the flat owners, and taking their opinions on the project,

  • Preparing the legal specifications and the technical specifications based on the generally accepted project with the support of the Law Office,

  • Preparing the preliminary specifications to be issued with the construction companies and receiving the bids of of the construction companies,

  • The process of evaluation of the bids received with the flat owners,

  • Process of signing contracts with the construction company based on the bid accepted,

  • Process of conducting the process together with the owners or the technical committee determined by the owners before the land registry office,

  • Process of receiving the risk analysis service from the authorized companies within the scope of the law, (Follow-up of the process if there are objections to the risky structure determination, follow-up of the exemption documents after the appeal, follow-up of the destruction notification processes following the finalization of the risky structure determination),

  • Process of obtaining the CMB licensed valuation report regarding the risky structure within the scope of the law,

  • Process of making necessary meetings within the scope of the law, conducting a risky building meeting through a notary public,

  • Process of communicating the notice of participating in the decree within 15 days to the property owners, who did/could not agree in the decree,

  • Auction process related to the owners who did not agree with the decree within the scope of the law,

  • It covers the process of the technical inspection of the building periodically until the construction is completed and delivered by the contractor under the contract signed with the contracting company, and of the written notification of the inspection to the owners or the technical committee as a report.

Summary Information on the Government’s Economic Support

  • You can use the 24-month Ministerial Valuation Loan for the Earthquake Risk Report. (An application by an Owner is sufficient.)  It is obligatory to carry out the valuation and send it to the Ministry within three months following the transfer of the loan amount to the account of the beneficiary. 

  • You can use the 24-month demolition loan of the ministry for the costs of demolition.

  • For the construction of the building, you can demand the Ministerial Loan Interest Support (with an annual amount of 4%) or rent allowance. (You can benefit from only one of the loan and rent benefits.)

  • You can receive from the contracted banks of the Ministry a loan with a 4%-interest rate payable by the ministry.

  • If you want to get rent allowance, you are entitled to rent allowance according to the law.  The period of allowance cannot exceed 18 months. The first 5 months of the rent allowance can be paid in advance taking into consideration the moving transactions. The monthly rent fee shall be updated annually at the rate of the Consumer Price Index published by the Turkish Statistical Institute.

 

 

Risky Structure Determination Process Please click here for more information

Interest Support Please click here for more information

Rent Allowance Please click here for more information

Rent Allowance Guide Please click here for more information

2017 Rent Allowance Amount Please click here for more information

Risky Structure Process Please click here for more information

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