Transfer of Development Rights — Application and Legal Framework

A current guide to the fields of application of the transfer of development rights, the thirty per cent limit, valuation and judicial remedies, under Zoning Law Art. 13 and Art. 38/A of the Regulation on Land and Plot Arrangements.

The transfer of development rights is a planning instrument enabling the privately owned right to build over an immovable meeting the statutory conditions to be transferred to another parcel by a development plan decision. It is governed by Arts. 5 and 13 of the Zoning Law as amended by Law No. 7534, and by Art. 38/A et seq. of the Regulation on Land and Plot Arrangements as amended in 2025. This article addresses the current scope, valuation, the density limit and judicial remedies.

The Concept and Definition of the Transfer of Development Rights

The transfer of development rights is the value-based transfer to a receiving parcel of the privately owned right to build that cannot be used on the sending parcel, on the conditions in the statute and the implementation development plan. Similar instruments in comparative law are known as “Transfer of Development Rights (TDR)”.

The mechanism in current Turkish law does not cover every building restriction. The unusable right to build on certain privately owned parcels that fall within a public or public service area in the implementation development plan and meet the conditions in Zoning Law Art. 13 and Regulation Art. 38/A may be transferred to a receiving parcel by a plan decision and valuation. Being within a protected site, forest, coastal or other special regime does not of itself confer a right of transfer.

In the legislation the “sending parcel” is the parcel from which the development right is transferred, and the “receiving parcel” the one on which the additional floor area ratio is used within the limits of equivalence of value and density. These parcels are determined not by the administration's unilateral free choice but by an implementation development plan decision conforming to the conditions in the statute and the regulation.

Legal Basis of the Transfer of Development Rights

The transfer of development rights is no longer a theoretical instrument for which Turkish law has no legislation. Law No. 7534 of 5 December 2024 added a definition of “transfer of development rights” to Art. 5 of Zoning Law No. 3194 and set out the scope and basic conditions of transfer in Art. 13. The amendment of 11 September 2025 to the Regulation on Land and Plot Arrangements established the implementing procedure in Art. 38/A et seq. As of 2026, transactions rest on the statute, the regulation and the implementation development plan decision.

Fields of Application

Transfer may be applied by plan decision in respect of parcels for which there is a 1/1000 scale implementation development plan, for which land and plot arrangement has been carried out or is not possible, and on which a privately owned right to build cannot be granted because all or part of the parcel falls within a public or public service area. Regulation Art. 38/A additionally governs certain public partnership shares and public service areas created before 10 July 2019 and the transitional conditions. Being within a protected site, coastal, forest or historic area does not of itself confer a right of transfer. The protective and property regime in special statutes and the conditions in Zoning Law Art. 13 and Regulation Art. 38/A must be met together. The sending and receiving parcels are determined by the plan, having regard to the owners' rights, the opinions of the relevant institutions and the nature of the public service.

Determining the Value in a Transfer of Development Rights

Transfer is value-based. The transferable right of the sending parcel is determined by the administration in a manner not exceeding the floor area ratio of the nearest neighbouring development parcel or block. The values of the sending and receiving parcels are determined by at least two licensed real estate valuation firms authorised under the Capital Markets Law; the administration's valuation commission determines the value in accordance with the principles in Art. 11 of the Expropriation Law, at not less than the average of those values.

The increase in the floor area on the receiving parcel resulting from the transfer may not exceed the ratio fixed in the development plan and in any event thirty per cent of the receiving parcel's floor area. The transaction is not completed by a mere abstract entry of a right to build: under Regulation Art. 38/B, the structures and ownership on the sending parcel are transferred or ceded without consideration in favour of the relevant administration or institution; the ownership arrangement on the receiving parcel is completed by the plan, valuation, consents and land registry procedures.

Legislative Gaps and Legal Problems

The 2024–2025 rules established the basic legal framework. Disputes may now focus less on a claim that “there is no regulation at all” than on whether the scope conditions are met, the conformity of a plan amendment with planning principles, valuation, the thirty per cent limit, equivalence, the owner's consent and the realisation of the public service area. An action for annulment and, where the conditions are met, a full remedy action may be brought against plan and implementation decisions within the periods in the Administrative Procedure Law.

Comparative Law: Transfer of Development Rights in Other Countries

Comparative law contains various models under the names TDR and transfer of air rights. Each country's property, planning and valuation regime differs, however; the outcome of a foreign practice cannot be used directly as a rule in Turkish law. Transactions in Türkiye are conducted primarily under Zoning Law Art. 13, the Regulation on Land and Plot Arrangements and the implementation development plan.

The Relationship with De Facto Expropriation

The transfer of development rights is one of the instruments that may be used for parcels falling within a public service area where the statutory conditions are met; it is not an unlimited and mandatory alternative to expropriation or compensation. De facto interference, long-term legal restriction by a plan, Zoning Law Arts. 10 and 13, the transitional provisions of the Expropriation Law and the rules on jurisdiction are assessed together on the facts. It should not be generalised that the passing of five years from the finalisation of a plan automatically gives rise to a right to compensation.

Proposals for Legislation on the Transfer of Development Rights

The principal legislation was enacted by Law No. 7534, and the implementing procedure was established by the Regulation amendment of 11 September 2025. What is needed hereafter is the consistent application of valuation standards, transparency of plan decisions, regard for the infrastructure capacity of receiving parcels, and predictability in land registry processes. Proposals for practice should be considered in the context of developing Art. 13 and Art. 38/A rather than replacing them.

Advantages and Risks of the Transfer of Development Rights

The potential benefits are that an alternative instrument is provided for acquiring public service areas, that the burden of ownership is balanced through valuation, and that planning gains flexibility. The potential risks are density and infrastructure pressure in the receiving area, valuation disputes, speculation and the disruption of plan integrity. The thirty per cent ceiling is therefore not on its own a sufficient control; the rationale of the plan, infrastructure capacity, equivalence of value and the owners' procedural safeguards must all be observed together.

The Role and Responsibilities of Local Authorities

The competent administration carries out, in conformity with the legislation, the implementation development plan amendment appropriate to the planning area, the identification of the sending and receiving parcels, the licensed valuation reports, the infrastructure capacity assessment and the land registry procedures. Whether the municipality, the metropolitan municipality or the Ministry is competent is determined by the type of plan and by special statute. A transfer does not become final until the display, publication, objection and institutional consultation processes have been completed in accordance with the statutory procedure.

The Right to Property and Proportionality Review

The effect of a planning restriction on the right to property is assessed as to legality, legitimate public interest and proportionality. The duration of the restriction, the owner's ability to benefit from the immovable, expropriation or other means of redress, and whether a special and excessive burden has been imposed on the individual are examined together on the facts. The transfer of development rights is a possible instrument; not every plan restriction automatically produces a transfer, expropriation or full market value.

Conclusion and Assessment

As of 2026 the transfer of development rights is an instrument with a basis in primary and secondary legislation. That said, there is no vested and directly claimable right of transfer for every restricted parcel. The implementation development plan, the scope conditions in Art. 13, the possibility of arrangement, valuation, the owner's consent and the receiving parcel limit must be examined file by file.

Final note: This article has been prepared for general information purposes and does not constitute legal advice. In specific disputes concerning the transfer of development rights and restrictions on the right to property it is recommended that a specialist attorney be consulted.

Frequently Asked Questions

Is the transfer of development rights lawful in 2026?

Yes. It is governed by Arts. 5 and 13 of the Zoning Law and Art. 38/A et seq. of the Regulation on Land and Plot Arrangements.

Can every restricted parcel benefit?

No. A 1/1000 plan, a public service area, the possibility of arrangement and the transitional conditions in the regulation are required.

Is there an unlimited density increase on the receiving parcel?

No. In addition to the plan ratio there is a statutory ceiling of thirty per cent.

Does a transfer extinguish the right to expropriation?

No. Expropriation, interference and compensation routes are assessed separately according to the specific restriction and decisions.