Did the collateral rate in urban transformation drop to 6%? The latest situation and current information on the risky structure collateral rate with the amendments of December 13, 2024, and February 4, 2026.

One of the most frequently wondered topics by property owners and contractors interested in urban transformation recently is whether the collateral rate has actually decreased. Although the phrase “collateral dropped to 6%” is frequently seen in the press, this reduction is not equally valid for every type of transformation. In this article, we clarify exactly under what circumstances the change in the collateral rate is valid and the current situation as of 2026.

Under What Circumstances Did the Collateral Rate Drop to 6%?

The 6% reduction in the collateral rate directly covers applications carried out on parcels where risky structures are located. With the amendment published in the Official Gazette dated 13/12/2024 and numbered 32751, the collateral rate that the contractor undertaking the construction work on parcels with risky structures must provide before obtaining a building permit has been set at 6% of the approximate construction cost (Implementation Regulation Article 13/9-c). The higher rate applied before this amendment was lowered, thereby easing the financial burden on the contractor in individual building transformations.

The critical point to note here is this: This fixed 6% rate has not changed the tiered rate (which decreased from 10% to 4%) in risky areas and reserve building areas. In risky areas and reserve building areas, collateral continues to be calculated in a tiered manner according to the area size (Implementation Regulation Article 13/9-a and b).

So, “collateral fell to 6%” statement is primarily true for risky plot transformations most commonly encountered in daily life. Regarding how collateral and insurance preferences change according to the financing model used with the contractor, the article on which model is more advantageous in urban transformation can be guiding.

What Did the February 4, 2026 Amendment Bring?

The amendment published in the Official Gazette dated 04/02/2026 and numbered 33158 did not change the collateral ratio again; however, it introduced a possibility for retroactive adjustment. According to the added temporary provision, collateral provided under building permits issued as of 1/1/2024 will be readjusted to the 6% rate upon the contractor’s request (Implementation Regulation Temporary Article 5). Thus, contractors who have provided collateral at a higher rate since the beginning of 2024 can request this difference and adjust it in their favor.

With the same amendment, the phrases “Minister of Environment, Urbanization and Climate Change” in the legislation text have been updated to “Head of Urban Transformation.” This is part of the institutional alignment regarding the execution of urban transformation processes within the Presidency of Urban Transformation.

What Does This Amendment Mean for Property Owners?

The reduction in the guarantee rate can be considered a regulation that paves the way for projects, as it lowers the contractor’s costs. However, from the property owner’s perspective, what is important is the existence and proper submission of the guarantee; a low rate affects the amount of the security, not its quality. Since administrative termination of the contract may arise in case of a dispute with the contractor, the issue of administrative termination of a contractor’s agreement in urban transformation should also be known. The official text of the amendments can be accessed via the Official Gazette and the Legislation Information System.

Frequently Asked Questions (FAQ)

Has the guarantee rate in urban transformation dropped to 6%? Yes, in parcels with risky structures; with the amendment dated 13/12/2024, this rate has been determined as 6% of the approximate cost of the structure (Implementation Regulation Art. 13/9-c).

Is this 6% rate valid for every transformation? No. In risky areas and reserve building areas, the graded rate, which decreases from 10% to 4%, continues to be applied (Implementation Regulation Art. 13/9-a and b).

Can I reduce the guarantee I previously provided at a higher rate to 6%? Guarantees in licenses issued from 1/1/2024 onwards can be re-adjusted to 6% at the contractor’s request (Implementation Regulation Provisional Article 5).

Did the February 4, 2026 amendment change the rate? No; it did not change the rate, but introduced the possibility of retrospective adjustment for guarantees provided since the beginning of 2024 (Implementation Regulation Provisional Article 5).

Why is Expert Legal Support Necessary?

Correctly determining which project type the changes in collateral rates apply to prevents erroneous calculations and unnecessary financial burdens. Particularly, an incorrect distinction between a risky area and a risky parcel can lead to both excessive collateral payments and administrative disputes. Urban transformation is a multi-layered process where administrative law, real estate law, and contract law intersect, and even a single procedural error can lead to significant loss of rights. Therefore, working with a lawyer specialized in the field is of great importance for the correct interpretation of current legislation.

As 2M Law Office (Attn. Meryem Günay), we provide services across Turkey, especially in Istanbul, where urban transformation is most intense; in Istanbul’s priority transformation districts of Tuzla, Pendik, Kartal, Maltepe, Ümraniye, Ataşehir, Kadıköy, Sancaktepe, and Küçükçekmece, as well as in Kocaeli’s Gebze and Darıca regions. As Istanbul urban transformation lawyers and Tuzla urban transformation lawyers, we offer legal support to right holders and contractors regarding current collateral regulations.