Turkey has published a new law offering significant financial incentives for urban renewal projects. The legislation, which had been anticipated for months, directly targets earthquake recovery efforts. Following the devastating earthquakes of February 6, 2023, millions of citizens were displaced. This package provides Treasury-backed support to help victims rebuild their homes and businesses. The law amends existing regulations related to settlement and construction in earthquake zones.
Under the new provisions, earthquake victims may purchase Treasury land at 50% of market value. The maximum eligible area has been capped at 1,000 square meters per beneficiary. Buyers can pay in cash or make a 10% down payment with interest-free installments. These installment plans extend for up to five years, easing the financial burden considerably. Had such measures been introduced earlier, the reconstruction process could have progressed more rapidly.
The legislation also introduces important legal protections for disaster victims receiving state assistance. Grants and loans provided by the government cannot be confiscated or subjected to legal seizure. Furthermore, beneficiaries who accept state-built housing can no longer return properties to the government. Unclaimed properties will be transferred to the Urban Transformation Presidency for resale or reuse. Revenue from these sales will fund a Special Account dedicated to transformation projects.
Administrative authority has been shifted from the Ministry of Environment to the Urban Transformation Presidency. This institutional restructuring is expected to streamline decision-making and accelerate project delivery timelines. Analysts suggest the package could stimulate the construction sector, which had been struggling recently. The initiative represents a strategic approach to balancing disaster recovery with economic growth. If implemented effectively, it may serve as a model for post-disaster reconstruction globally.
