Should Foreign Buyers Purchase Property in a Risky Building in Turkey? (2026 Updated Guide)

Should a foreign investor buy an apartment in a risky building in Turkey? Learn about demolition, title deed risks, land shares, replacement apartments, contractor agreements, additional costs and legal due diligence before buying.

Is Buying Property in a Risky Building a Good Investment?

Buying property in a building officially determined to be risky can sometimes create an investment opportunity, but it can also expose a foreign buyer to substantial legal, financial and construction risks.

The answer is therefore not automatically yes or no.

A foreign investor should first understand what is actually being purchased.

If a building has already been officially determined to be risky, the buyer is not simply acquiring an apartment for ordinary long-term occupation.

The buyer may effectively be acquiring an ownership position in a redevelopment process that can lead to evacuation, demolition, owner decisions, contractor negotiations and eventually a replacement property.

The investment should therefore be evaluated as both a property acquisition and an urban transformation transaction.

Lawyer Fırat Fesih Kaya assists foreign buyers and investors with pre-purchase due diligence involving risky buildings, title deed investigations, land shares, redevelopment agreements, replacement apartments and urban transformation disputes.

What Does “Risky Building” Actually Mean?

A risky building is not simply an old building or a building that looks poorly maintained.

Under the urban transformation framework, risky-building status results from a technical assessment carried out according to the applicable statutory procedure.

The assessment is performed through authorized institutions or organizations and reviewed through the relevant administrative process.

Once the report is found appropriate, the risky-building status is reflected in the land registry process and owners are notified through the applicable statutory mechanisms.

Therefore, a seller saying “the building is old but safe” is not the same thing as an official legal determination.

Can a Foreign Buyer Purchase a Property in a Risky Building?

The existence of risky-building status should not automatically be confused with an absolute prohibition on every property transaction.

However, the buyer must investigate the exact legal stage and any restrictions or pending procedures affecting the ownership interest.

A building that has only recently been declared risky presents a different situation from a building where demolition is imminent or where a dissenting owner’s share has already entered a statutory sale procedure.

The title record and administrative file should therefore be checked immediately before the transaction.

The Buyer May Be Purchasing a Future Redevelopment Position

This is the most important investment concept.

Suppose a foreign investor buys an apartment in a risky building.

The existing apartment may soon disappear physically through demolition.

What remains economically important is the investor’s ownership position, land share and rights under the redevelopment structure.

The investment should therefore be valued partly according to what the buyer can reasonably expect after transformation.

Do Not Value Only the Existing Apartment

Traditional property due diligence focuses heavily on the apartment itself.

How many square meters?

Which floor?

What view?

What rental income?

What condition?

In a risky building, these questions remain relevant, but they may soon become secondary.

The buyer should also ask:

What is the land share?

What redevelopment decisions have already been taken?

Has a contractor been selected?

What replacement apartment is allocated?

Will owners pay additional money?

What can legally be constructed on the parcel?

When is demolition expected?

These questions may determine the real value of the investment.

Risk 1: Evacuation and Demolition

The first major risk is obvious.

A risky building can progress toward evacuation and demolition under the urban transformation framework.

A foreign buyer who purchases the property intending to live in it for many years may therefore discover that the expected occupation period is extremely short.

The same issue affects investment property.

Rental income can stop when the building must be vacated.

A Low Purchase Price May Reflect Imminent Demolition

Risky-building apartments can sometimes appear inexpensive compared with newer properties.

The discount may look attractive.

But the buyer should ask why the property is cheaper.

The price may reflect imminent demolition, loss of rental income, uncertain redevelopment timing, additional construction contributions or disagreement among owners.

The apparent discount should therefore be compared with the total transformation risk.

Risk 2: The Buyer May Not Control the Redevelopment Decision

A foreign investor may assume:

“I will buy the apartment and then decide whether I want redevelopment.”

That assumption can be dangerous.

The urban transformation framework allows redevelopment decisions to proceed through statutory majority mechanisms where unanimity cannot be achieved.

Under the current framework, relevant decisions concerning new applications can generally be taken by the required simple majority calculated according to ownership shares.

A new buyer may therefore enter a process that other owners have already substantially determined.

Check Whether the Majority Decision Has Already Been Taken

Before purchasing, obtain owner-meeting records.

Determine whether the owners have already selected a contractor.

Check whether a redevelopment agreement has been approved.

Determine whether the proposed replacement apartments have already been allocated.

Check whether additional payments have been discussed or approved.

The buyer should understand the existing decision structure before becoming an owner.

Risk 3: Refusing the Redevelopment Proposal May Not Stop the Project

A buyer may dislike the agreement after purchasing.

But simply refusing to sign does not necessarily stop redevelopment.

Where the statutory majority and procedural conditions are satisfied, a dissenting owner’s position can eventually become subject to the special share-sale mechanism.

This means that the investment strategy cannot be based solely on the assumption that the buyer will have a veto.

Dissenting-Owner Share Sale Is a Serious Risk

The current urban transformation framework provides a special procedure concerning ownership shares of owners who do not participate in the applicable majority decision.

Before buying, a foreign investor should determine whether the seller is already a dissenting owner.

If a sale procedure concerning the share has started, the legal position requires particularly careful investigation.

The title record should also be reviewed for any relevant notation or restriction associated with such a procedure.

Risk 4: Land Share May Determine More Than the Existing Apartment Size

The land share attached to the independent unit can become extremely important after demolition.

Two apartments that appear similar physically may have different registered land shares.

A foreign buyer should therefore never evaluate a risky-building investment solely by comparing interior square meters.

The title structure must be reviewed.

Check Whether the Land Share Is Correct

Historical land-share allocation may itself be disputed.

If the registered shares do not correspond to the legally relevant proportional structure, owners may become involved in land-share correction disputes.

Such disputes can become especially important during urban transformation because ownership shares can affect decision-making and negotiations.

The buyer should identify this issue before purchase.

Risk 5: The Replacement Apartment May Be Smaller

The existing apartment does not automatically guarantee an identical replacement apartment.

The new building may be subject to current planning requirements.

The redevelopment agreement may also allocate units differently.

A buyer should determine exactly what replacement property, if any, has been promised to the seller.

The answer should be found in legally relevant documents rather than oral statements.

Existing Floor Area Is Not Automatically Protected

An older building may have been constructed under planning rules that are no longer applicable.

Current development density, height limits, setbacks, parking requirements and plan notes may affect what can be reconstructed.

For this reason, an existing large apartment does not automatically mean the buyer will receive the same floor area in the new building.

Risk 6: The Buyer May Receive a Different Floor

Floor allocation can have significant economic consequences.

An existing upper-floor apartment with a valuable view may be replaced by a lower-floor unit.

A ground-floor commercial property may be moved to a less attractive location.

Orientation may change.

Natural light may change.

The buyer should therefore identify the replacement unit precisely before purchase.

Risk 7: There May Be No Final Replacement Apartment Yet

Some risky buildings are sold before the redevelopment agreement has been finalized.

In that situation, the buyer may be purchasing substantial uncertainty.

The contractor may not yet be selected.

The new architectural project may not exist.

The permit may not have been issued.

The number of new units may still change.

The buyer should price that uncertainty rather than assuming the most favorable possible redevelopment scenario.

Risk 8: A Contractor Agreement May Already Exist

Where owners have already signed with a contractor, the agreement should be reviewed before purchase.

This document can be more important to the future investment than the physical condition of the existing apartment.

It may determine the replacement unit, construction period, owner contributions, contractor obligations, temporary rent, delay consequences and property-transfer structure.

Ask for the Full Agreement, Not a Summary

A seller may say:

“The contractor pays everything.”

“The new apartment will be larger.”

“Construction takes eighteen months.”

“Owners receive rent during construction.”

“No additional payment is required.”

These statements should be checked against the signed agreement.

If the contract says something different, the buyer may inherit a very different economic position.

Risk 9: Additional Money May Be Required

A particularly cheap risky-building apartment can become expensive if the redevelopment structure requires substantial owner contributions.

Before buying, determine whether owners are required to make construction payments.

Check whether additional contributions have already been approved or requested.

Investigate whether the contractor has recently demanded further money.

The total investment cost should include these potential obligations.

Risk 10: Contractor Financial Problems

Demolition can occur long before the replacement building is completed.

This creates contractor risk.

If the contractor experiences serious financial problems after demolition, owners may be left with an unfinished project.

A foreign buyer should therefore investigate the contractor rather than assuming that signing a redevelopment agreement guarantees completion.

Contractor Bankruptcy Can Fundamentally Change the Investment

The worst-case scenario is not merely late delivery.

The old building may already have been demolished.

The contractor may become insolvent.

Construction may stop.

Owners may then need to finance completion, replace the contractor or enter litigation.

This risk should be included in the purchase decision.

Risk 11: Construction May Take Much Longer Than Expected

A foreign investor should not calculate returns solely using the optimistic completion date provided in marketing materials.

Permit procedures can take time.

Owner disputes can delay implementation.

Construction can stop.

Planning changes can require revisions.

Contractor financial difficulties can cause substantial delay.

A conservative investment model should therefore include a longer redevelopment period.

Risk 12: Rental Income Can Disappear During Construction

A property purchased for rental income may cease producing rent once evacuation occurs.

The reconstruction period may then continue for a significant time.

The buyer should calculate the investment return after deducting the expected period without rental income.

A high current rental yield can otherwise create a misleading impression of profitability.

Contractor Rent and Public Assistance Are Different

The buyer should distinguish temporary rent promised by the contractor from public rental assistance available under the urban transformation framework.

These are separate mechanisms.

Contractor payments depend on the private redevelopment agreement.

Public assistance depends on the applicable statutory eligibility requirements.

Neither should be assumed without verification.

Risk 13: Zoning Conditions May Change the Project Economics

Urban transformation does not operate independently from planning law.

The buyer should check current development rights.

A replacement building may have different density, height, floor or setback conditions.

A zoning amendment may also be pending.

These factors can substantially affect the size and value of replacement apartments.

Do Not Pay a Premium for Speculative Additional Floors

A seller or contractor may claim that the redevelopment project will receive additional development rights.

The buyer should ask whether those rights are legally approved.

Expected future planning advantages should not be valued as guaranteed rights.

Official planning documents should be reviewed.

Risk 14: The Property May Be Inside a Wider Transformation Area

The buyer should investigate more than the individual risky-building determination.

The parcel may also fall within a risky area, reserve building area or another broader implementation framework.

Area-based transformation can affect planning, valuation and redevelopment strategy.

The official status of the parcel should therefore be checked independently.

Risk 15: Existing Mortgages and Attachments Still Matter

Urban transformation does not automatically remove legal problems from the title.

Mortgages, attachments and other registered rights can continue to create complications.

The buyer should obtain an updated title record immediately before acquisition.

The title should also be reviewed for urban transformation-related entries.

Risk 16: The Seller May Have Existing Claims Against the Contractor

Suppose the contractor is already late.

The seller may have claims for temporary rent or delay compensation.

There may also be disputes concerning additional payments or apartment allocation.

A buyer should determine whether such existing claims are transferred with the transaction or remain with the seller.

This should not be left unclear.

Risk 17: There May Already Be Litigation

Risky-building projects frequently generate legal disputes.

The risky-building determination may have been challenged.

Owners may be litigating over land shares.

A zoning plan may be under judicial review.

The contractor agreement may be disputed.

A dissenting-owner sale may be challenged.

Pending litigation can significantly affect the investment timeline.

Can Buying a Risky-Building Property Still Be Profitable?

Yes, potentially.

Urban transformation can create significant value.

An old apartment may eventually be replaced by a new property with better structural safety, modern building systems and stronger market appeal.

The surrounding area may also improve.

A buyer who understands the redevelopment structure may be able to acquire the ownership position at an attractive price.

But the potential return comes with additional risk.

When Might the Investment Be More Attractive?

A risky-building investment may be easier to evaluate where the legal and commercial structure is already relatively clear.

For example, the title position may be clean.

The land share may be appropriate.

The required owner decision may already exist.

A financially credible contractor may have been selected.

The redevelopment agreement may clearly identify the replacement unit.

Planning conditions may be confirmed.

A permit may have been obtained.

Owner contributions may be known.

Construction protections may be adequate.

The more uncertainty that has been removed, the more accurately the investment can be priced.

When Should a Foreign Buyer Be Particularly Cautious?

Caution is especially important where the seller cannot produce the redevelopment agreement.

The replacement apartment is unclear.

The land share appears unusually low.

Owners are deeply divided.

The contractor is demanding unexpected additional payments.

The construction permit has not been obtained.

The project depends on speculative zoning increases.

There is active litigation.

The contractor’s financial position is questionable.

Demolition is imminent but reconstruction financing is uncertain.

Several of these factors together can transform a discounted purchase into a high-risk investment.

Do Not Confuse a Cheap Apartment With a Cheap Investment

The purchase price is only the first part of the calculation.

A realistic investment model should consider:

the purchase price,

transaction costs,

possible additional construction payments,

loss of rental income,

expected construction period,

financing costs,

contractor default risk,

expected replacement property value,

and potential legal costs.

Only after these factors are considered can the buyer assess whether the discount is genuine.

Citizenship-Related Buyers Need Additional Caution

A foreign investor purchasing property as part of a citizenship-related investment strategy should not treat urban transformation as a separate issue.

The property’s valuation, title status, future redevelopment and transaction structure can all become relevant to the broader investment.

The real estate and investment requirements should therefore be reviewed together before completion.

Buying Before Demolition Versus After Demolition

The stage of transformation can significantly change the nature of the investment.

Before demolition, the buyer may still be acquiring an existing independent unit.

After demolition, the title and redevelopment structure may look materially different.

The buyer should therefore understand exactly what is registered at the time of acquisition and what rights exist under the redevelopment agreement.

Never assume that the same due diligence applies at every stage.

What Should Be Checked Before Buying?

The buyer should obtain an updated title record and verify the registered owner.

The land share should be examined.

Mortgages, attachments, annotations and declarations should be checked.

The risky-building determination and its current stage should be verified.

Owner-meeting decisions should be obtained.

Any redevelopment agreement should be reviewed.

The replacement unit should be identified.

Current zoning conditions should be investigated.

Permit status should be checked.

Additional owner payments should be identified.

Contractor financial and project risks should also be evaluated.

Ask What Exactly Will Be Transferred to You

The purchase documents should make clear what the buyer is receiving.

Is it the existing independent unit?

Is there already a contractual right to a specified replacement unit?

Are rights under the redevelopment agreement included?

Are there accrued debts?

Are there existing claims against the contractor?

Have any redevelopment rights already been assigned or transferred?

This is one of the most important parts of the transaction.

2026 Practical Legal Strategy

The first priority is confirm the risky-building status through official records rather than relying on the seller’s description.

The second priority is determine exactly how advanced the transformation process is. A newly approved risky-building determination is different from an already demolished project.

The third priority is obtain an updated title record and examine the land share, mortgages, attachments, declarations and any transformation-related entries.

The fourth priority is identify every owner decision already taken and determine whether the statutory majority has already committed the project to a particular redevelopment structure.

The fifth priority is review the complete contractor agreement before paying a substantial deposit.

The sixth priority is identify the replacement apartment precisely and compare its expected economic characteristics with the apartment currently being sold.

The seventh priority is calculate all additional owner contributions and expected periods without rental income.

The eighth priority is verify current zoning conditions, permit status and the legal feasibility of the proposed new building.

The ninth priority is investigate contractor completion risk and determine what contractual security exists if construction stops.

The tenth priority is price the investment according to the realistic downside scenario, not only the expected value of the completed new apartment.

The central principle is clear: a foreign buyer should not purchase property in a risky building simply because it is cheap or because a new apartment has been promised. The investment may be attractive only after the buyer understands the title structure, land share, majority decisions, redevelopment agreement, replacement unit, planning position, construction costs, contractor risk and expected transformation timeline.

Frequently Asked Questions

1. Can a foreign buyer purchase an apartment in a risky building?

Potentially, yes, depending on the property’s legal status and the stage of the transformation process. However, detailed due diligence is particularly important before acquisition.

2. Does risky-building status appear in the title records?

Once a risky-building report is approved through the applicable procedure, the relevant authority notifies the land registry so that the risky-building status is reflected in the property record. The current title record should therefore be examined carefully.

3. Will I automatically receive a new apartment after demolition?

No assumption should be made without examining the ownership position, redevelopment decision, contractor agreement and implementation structure. The exact replacement unit should be documented.

4. Will the new apartment have the same size as the old apartment?

Not necessarily. Current planning conditions, development capacity and the redevelopment agreement can affect the size and characteristics of the replacement unit.

5. Can other owners continue redevelopment if I disagree?

Potentially, yes. Under the current framework, applicable decisions concerning redevelopment can generally proceed through the required simple majority calculated according to ownership shares where unanimity cannot be achieved.

6. Can my ownership share be sold if I reject the majority decision?

Potentially, where the statutory requirements for the dissenting-owner share-sale procedure are satisfied. This is why existing majority decisions should be investigated before purchase.

7. Can the contractor ask me for additional money?

A demand may arise. Whether it is legally payable depends on the redevelopment agreement, transaction documents and surrounding circumstances. Existing and potential owner contributions should be investigated before purchase.

8. Can I rent the apartment until demolition?

This depends on the stage of the risky-building, evacuation and demolition process and the circumstances of occupation. A buyer should not calculate long-term rental income without checking the current administrative status.

9. Is a risky-building property always a bad investment?

No. It may create substantial redevelopment value in an appropriately structured project. The issue is whether the purchase price adequately reflects the legal, construction, financing and timing risks.

10. What is the most important document to review before buying?

There is no single document sufficient for the entire investigation. The title record, risky-building status, land share, owner decisions, redevelopment agreement, planning information, permit status and replacement-unit documents should be considered together.

Legal Assistance for Foreign Buyers Considering Property in a Risky Building

Buying property in a risky building is fundamentally different from purchasing an ordinary completed apartment.

The buyer may be acquiring a property that will soon disappear physically and be replaced by rights in a redevelopment project.

That makes legal due diligence essential.

Before completing the acquisition, the foreign buyer should know what land share is being purchased, what decisions the other owners have already taken, whether a contractor agreement exists, what replacement property is promised, whether additional money will be required and what happens if construction is delayed or never completed.

The investment should be evaluated according to the legal position after demolition, not merely according to the apartment visible on the purchase date.

Fırat Fesih Kaya Law Office provides legal assistance to foreign individuals, investors and companies considering the purchase of properties affected by risky-building and urban transformation procedures.

Lawyer Fırat Fesih Kaya assists with pre-purchase due diligence, title deed investigations, risky-building status, land-share analysis, redevelopment agreements, replacement-apartment rights, zoning and permit investigations, contractor risks and urban transformation disputes.

Phone: +90 312 434 22 22
WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr