Urban Transformation Services
Urban transformation entered our agenda with the publication of Law No. 6306 on May 31, 2012, regarding the transformation of areas at risk of disasters, with the aim of establishing healthy and safe living environments according to technical norms and standards, as well as determining the procedures and principles for improvement, liquidation, and renewal in disaster-prone areas and other risky buildings.
As with any production process, there are inputs and outputs in the urban transformation process. Our inputs are the land and, if applicable, the disaster-vulnerable buildings on it, and our outputs are structures built in accordance with laws and regulations. As seen, it is necessary to explain these two different situations in an understandable common unit and establish transformation parameters. The parameters identified through valuation and consultancy reports prepared by SPK-licensed valuation organizations will ensure a fair transition between these two situations.
The types of valuation and consultancy reports prepared under urban transformation vary according to their purpose. Let’s briefly explain the types of reports and their uses below:
Land Share Value Determination Report: These reports are prepared to determine the value of the land shares that will be used as the basis for the sale of the land shares of the remaining 1/3 of the owners once at least 2/3 of the owners have agreed on urban transformation. These reports are prepared for use before the decision of the municipal value determination commission.
Land Share Study Report: During the stage of establishing the land share, the value determined according to the characteristics of the independent sections of the property under the condominium law must be calculated as the ratio of that value to the total property value. This rule is generally not followed in land share establishment, resulting in a very high rate of land share corrections by canceling the land shares and adjusting them in the land share correction lawsuits.
Current Status Value Determination Report: This valuation report is prepared at the beginning of the urban transformation process to identify and determine the legal status and value of each property owner. It is prepared to demonstrate the rights and values of the owners before urban transformation.
Project Value Determination Report: During the urban transformation process, this valuation report is prepared for the property owners based on independent section-based determinations of the proposed project. It is prepared to ensure that the property owners understand the suggestions made by the developer or contractor and to provide a basis for ownership distribution proposals.
Ownership Distribution Proposal Report: This report is prepared based on the agreement reached between the property owners and the developer/contractor regarding the conditions of the contract, considering the independent sections. It aims to create a proposal distribution table that explains the current status, project status, and the distribution criteria for all stakeholders to see.
Feasibility Report: These reports determine the feasibility of the urban transformation project. They evaluate whether the proposed project can be implemented in line with market conditions and provide recommendations regarding its feasibility. These reports are prepared for decision-makers to understand the current status before making a decision.
The most challenging point in the urban transformation process is when at least 2/3 of the property owners agree to the transformation. With our valuation and consultancy services, we will ensure that the process is carried out transparently and reliably where needed.
