Before we briefly talk about the impact of urban transformation on real estate, let’s first know what it is in simple words.
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What is Urban Transformation
Urban transformation is when Old Buildings or homes are converted into New Homes or Societies, enabling more people to live in the same space.
Urban transformation is significant as the new buildings are constructed with new codes and conduct, including earthquake-proof characteristics and other safety measures for people to make the homes livable.
Turkey has a solid legal framework governing this transformation and is working on a national-scale city plan while conserving residential and agricultural areas.
Urban change is occurring not just as a result of the building but also as a result of changes in social structure. Since everything exists for humans, urban transformation is accomplished with excellent architectural designs comparable to the standard of life that people are accustomed to and by maintaining social relations.
The Impact of Urban Transformation
The impact of urban transformation is, without a doubt, success and nothing but only filled with positives. Let us list them below:
- The urban transformation has uplifted the area dramatically. The old homes, which were in a very pathetic condition with just a few floors, are converted into high towers with complicated infrastructure.
- Urban transformation is a win-win situation for everyone who is part of it and for the one who is not even part of it. New properties, without a doubt, have more demand and are more attractive to invest so therefore, the real estate market is uplifted, creating demand from locals and foreigners. At the same time, the old homeowners are upgraded to their new homes with more facilities such as social facilities, swimming pools, green spaces, Gym, etc. And coolness for the eyes of the public passing by these areas and watching it.
- Urban Transformation has created several jobs in the construction sector and the service sector, decreasing the unemployment rate.
- More New construction in such a beautiful nature attracts foreigners to invest in the country and contribute to Turkiye’s economy. Therefore foreign investment is also increased due to these new projects.
- Through urban transformation, it is anticipated that operations like converting disaster-prone areas, dismantling, rebuilding, repairing, or moving numerous structures will benefit innumerable enterprises.
- Many old buildings are different from the earthquake resistance standards in Istanbul. Therefore, urban transformation is not a choice but necessary in a city like Istanbul, where the population is high, and earthquake expectancy increases.
- Urban Transformation also affects the tourism sector. It improves the country’s standards and makes foreigners interested in watching and living it.
How can Investors benefit from Urban Transformation?
Investors can benefit big time. By keeping in touch with Option One Real Estate, we ensure you know the projects that will soon be part of urban transformation.
We suggest you buy the old property at way lower prices and wait for your new house to arrive when it’s completely demolished and transformed into New Construction. Or Be part of owning property in an urban transformation project in the beginning stages.
How Important is Urban Transformation in Istanbul in the Year 2023?
Around 17% of Istanbul, homes need Urban Transformation.
After the year 2000, the emphasis on urban transformation switched to renewal, rebuilding the housing stock, and creating urban dwelling zones following the new standards. Local governments also gained control over planning laws and procedures after the 1980s.
The private sector now also plays a significant role in the construction and urban change thanks to globalization and privatization. These changes have sped up the urban transformation process and shifted the primary actor from the public to the private sector. In Turkey, urban transformation has been used in planning since the 1980s.
Following the massive destruction in 11 provinces caused by the Kahramanmaraş-centered earthquakes on Feb. 6, authorities in Istanbul, one of the most populated cities in Europe, have accelerated urban transformation efforts.
In this regard, the Ministry of Environment, Urbanization, and Climate Change are collaborating with district municipalities and the business sector on projects initiated in 2012 with the motto “Urban Transformation All Over Türkiye” to renovate outdated buildings.
While 93,000 independent units are now being built, 695,000 separate teams have been transformed during ten years in the city with the help of municipalities and the private sector.
By 2035, the government hopes to have rebuilt every shaky structure in preparation for urban renewal. Since 2019, the ministry has taken part in the urban transformation process in Gaziosmanpaşa to implement procedures to build safe and habitable urban settlements for residents in high-risk locations.
Through collaboration with the Housing Development Administration (TOKI), 5,375 independent units, including 5,265 homes and 110 commercial buildings, are transformed throughout the district’s four neighborhoods and five sub-regions.
Why is it essential for you as an investor to become part of Urban Transformation?
After the year 2000, the emphasis on urban transformation switched to renewal, rebuilding the housing stock, and creating urban dwelling zones following the new standards. Local governments also gained control over planning laws and procedures after the 1980s.
The private sector now also plays a significant role in the construction and urban change thanks to globalization and privatization. These changes have sped up the urban transformation process and shifted the primary actor from the public to the private sector. In Turkey, urban transformation has been used in planning since the 1980s.
As an investor, your showing interest is critical here. Your demand for buying properties will motivate the private sector to boom its construction ability. But at the same time, as an investor, you benefit and be part of a great cause.
Conclusion (The impact of urban transformation on real estate)
As mentioned above, urban transformation is undoubtedly more beneficial than we think. And it is happening and continues to happen because it’s not a choice, but it’s necessary.
Before it is too late for you to reap the benefits of it, I suggest you invest now.
You can read also An Overview of The Rental Market in Istanbul.
