The Contractor Wants Money in Urban Transformation: When Is It Reasonable? (2026)
- If the new building has little extra sellable area, the contractor's share cannot cover costs; asking owners for a per-flat contribution is then not improper in itself.
- Zoning is decisive: the lower the ratio of new to existing area, the higher the owners' contribution.
- In Istanbul Yarısı Bizden projects, a TRY 875,000 grant and TRY 875,000 loan per home are paid directly to the contractor in stages, closing much of this gap.
- By law, the contractor may sell its own units only with the authority's permission and at a rate 10 points below the construction completion rate; more requires all owners' consent.
"The contractor wants money per flat — is that normal?" is one of the most debated questions among owners. Short answer: in some buildings it is, in others it is not. The difference lies in zoning rights and how the offer is built.
How the maths works
In a flat-for-land deal, the contractor recovers costs by selling its share of units:
Contractor's sellable area = Total new area − Area given to owners
If the value of that area does not cover construction, financing, taxes and a reasonable margin, the gap is closed by owners' contributions or state support.
Example: zoning changes everything
Illustrative only; each flat is 100 m² gross.
| Scenario | Existing | New (excl. parking) | To owners | To contractor |
|---|---|---|---|---|
| A – low zoning | 8 × 100 = 800 m² | 800 m² | 800 m² | 0 m² |
| B – medium | 800 m² | 1,000 m² | 800 m² | 200 m² |
| C – high | 800 m² | 1,200 m² | 800 m² | 400 m² |
In A, there is nothing to sell, so owner contributions (or grants/loans) are unavoidable. In C, a request for extra money needs a clear explanation. The Ministry's official 2026 unit cost for residential buildings up to 21.50 m (class III-B) is TRY 21,050/m²; real site costs can be higher (2026 construction costs).
The Yarısı Bizden difference
In Istanbul Yarısı Bizden projects, a TRY 875,000 grant and TRY 875,000 loan per home are paid directly to the contractor in stages (30% start, 30% frame, 30% plaster, 10% occupancy). Compare offers on the total including grant and loan.
How to recognise a fair offer
- Is the feasibility shared? New area, sales assumptions and cost items in writing.
- Are payments tied to progress? Large upfront lump sums are a red flag.
- Is there a guarantee? Under Law No. 6306 the contractor must provide building completion insurance or a guarantee before the permit.
- Is the specification clear? Attach the materials list to the contract.
- References? Look at completed projects with occupancy permits (contractor checklist).
Legal protections for owners
- Limited sale of the contractor's share: only with the authority's permission and at a rate ten points below the completion rate; more requires all owners' consent.
- Contractor not starting: if work has not started within one year or is stalled six months, owners can start termination by simple majority (majority decision).
- Tax and fee exemptions cut costs — ask whether they are reflected in the offer (exemptions).
Write into the contract
- Location, net/gross area and floor plan of owners' flats,
- Amount, schedule and stages of any extra payment,
- Delivery date and delay penalties,
- Staged title transfer and guarantee,
- Who pays rent during construction.
See our flat-for-land agreement guide.
ÇET Yapı's approach
ÇET Yapı shares the feasibility transparently with owners and ties payments to progress and guarantees. For a realistic assessment based on your building's zoning, fill in our pre-application form.
This article is general information; consult a lawyer before signing.
Frequently Asked Questions
Why does the contractor ask for money?
The contractor recovers construction costs by selling its share of units. If zoning is low and little area remains after owners' flats, it asks owners to cover the gap.
What percentage does the contractor take?
There is no fixed legal ratio. The share is agreed by contract based on location, zoning rights, sale prices and construction cost; in valuable districts and high-zoning parcels owners get more.
Is paying per flat safe?
Only in stages tied to construction progress, under a notarised contract, with building completion insurance or a guarantee provided before the permit.
Can the contractor sell its flats whenever it likes?
No. In Law No. 6306 projects, it may sell its units only with the authority's permission and at a rate ten points below the completion rate; higher sales need all owners' consent.
With Yarısı Bizden, do owners still pay the contractor?
The grant and loan are paid to the contractor on owners' behalf. If costs exceed this, extra payment may arise under the contract; compare offers on the total including the grant.
Sources
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