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USE OF MARKET-LED MEASURES FOR
LAND ASSEMBLY IN TURKEY
MUHAMMAD AHSAN
RESEARCH ASSOCIATE (URBAN PLANNING) – THE URBAN UNIT
M.SC. CITY AND REGIONAL PLANNING (CRP) – UNIVERSITY OF ENGINEERING & TECHNOLOGY (UET), LAHORE
Fragmented
Ownership
Hindrances In
Land Assembly
Market-led Measures
As Solution
Impediments To
Land Development
IMPERITIVE POINTS
OF RESEARCH
PLANNING AND LAND USE REGULATIONS
Operate Property Market
Land Values Densities
Apply
Restriction
Convergence
Incentives
Numerous
Others
MARKET
WORKBETTER
Market Incentives
for Land Assembly
Government has
shifted their role from
Provider to
Facilitator
Increase in Private
Sector Investments
& Public-Private
Partnerships
Large-Scale Developments Often Require Land Assembly
THEORETICAL BACKGROUND
Traditional Approaches For
Land Assembly
Expropriation
Raise The Costs Of Development
& Social Resistance
Purchasing
TRADITIONAL
APPROACHES
OF POLICY
INTERVENTION
2
1
4
3
PUBLIC FORCE /
COMPULSORY ACQUISITIONLAND READJUSTMENT (LR)
REARRANGE
THE LAND TITLE
MARKET-BASED INCENTIVES
• Original Landowners
• Potential to Solve Holdout Problem
• Majority owners agreed on Land Assembly
• Make an application to Land Tribunal for an
order to assemble the undivided shares
• Used at the time
of Compulsion
• Regarded As Tailor-made
Instruments
• Provision of Incentives for
Large Scale Development
1
2
3
4
5
MARKET-LED MEASURES FOR LAND ASSEMBLY
‘NEOLIBERAL’ POLICIES
Deregulation
Free-Market Domination
Social Policies
Privatization
Socio-Economic
Flexibility
PRINCIPALS
ATTRACT
PRIVATE SECTOR
Release Grants
Tax Breaks
Incentive
Removal of Constraints
Encourage Desirable Activities
Discourage Non-Desirable Activities
Amalgamation of
Urban Plots Into
Larger Units
MARKET-LED MEASURES FOR LAND ASSEMBLY
HONG KONG
SINGAPORE
Plot Ratio;
permitted to 7.5
than 6.0 as Usual
Density Incentives;
Induced Site Assembly
MARKET-LED MEASURES FOR LAND ASSEMBLY
INTERNATIONAL CONTEXT
LAND ASSEMBLY IN TURKISH CONTEXT
Existence of
Small Parcels
Fragmented
Ownership Structure
Illegal Uses in
Urban Areas
HINDRANCES IN LAND ASSEMBLY
IN TURKEY
LAND ASSEMBLY IN TURKISH CONTEXT
After 2005, LAW NOs. 5393 & 5366
Enabled
Authorities
for Land
Assembly
Agreements With
Landowners
Expropriation;
If No Agreement
Parcel Production In Accordance With
The Local Physical Plan
MARKEY-LED MEASURES IN TURKEY
CASE STUDY
FATSA
MALTEPE
Population: 460,955
Census, 2012
Annual Growth Rate = 33.5%
From 1990 And 2000
Dynamic Growth Character
Population: 74,602
Census, 2012
Annual Growth Rate = 47.9%
From 1990 And 2000
Fast Growing Settlement
FATSA
Predominance of Private Sector in
Housing Production
“Single Plot-Single Building”
Approach
Land Readjustment (LR)
Yap-sat Style of Housing Supply
Some “Mass Housing
Cooperatives”
No Squatter Housings or illegal
Subdivisions
MALTEPE
Gentle Hillside Topography
Dual Structure (Legal-illegal) in the
Land Development Process
Squatter Houses Were Built on
Private and Public Lands
Transformed from Squatters Into
Apartment Buildings with the
Legalization Policy in 1980s
Small-Scale to Large-Scale
Dwelling Production in the 1990s
EXISTING LAND DEVELOPMENT PRACTICE
Stage:1 Plan Changes
Before 2007
Stage: 2 Schedule of Statutory Notes
After 2007
POLICY MEASURES FOR MARKET-LED LAND
ASSEMBLY
 Incentives in Plot
Area Ratio
 13 projects are
examined out of
22 projects
PAR=<1 New Parcel Size * Coefficient
+ 0.40
PAR=1-1.5 New Parcel Size * Coefficient
+ 0.35
PAR > 1.5 New Parcel Size * Coefficient
+ 0.30
If minimum Land Assembly
Area is 1500 m2
Incentive; New PAR
*PAR = Plot Area Ratio
FATSA
 43 projects
MALTEPE
POLICY MEASURES FOR MARKET-LED LAND
ASSEMBLY
1- Assembling of at Least Ten Urban Parcels
2- Urban Parcels with a Minimum Size of 5000 m2
3- Urban Parcels not less than 3000 m2 With Separate
Blocks
INCENTIVE;
PAR will be increased by 0.50
Three Conditions
 3 projects are examined out of 7 projects
64%
Construction Area
Increased
Person per Hectare
200 410
Density Increase
FATSA Stage:01
99%
Construction Area
Increased
Person per Hectare
390 760
Density Increase
FATSA Stage:02
Parcel size
after the
incentives
(m2)
Housing
units
produced
Total
construction
area before the
incentives (m2)
Total
construction
area after the
incentives (m2)
Total 154,761.5 2941 149,864.7 297,895.5
Table 2*
Market Based Incentives for Land Assemble in the 2nd Stage in Fatsa
after 2007
*43 Projects
33%
Construction Area
Increased
Person per Hectare
600 800
Density Increase
MALTEPE
SUPPLIED HOUSING UNITS
AFFORDABILITYFATSA
32 TIMESof annual income for the
first 20% of Income Group
18 TIMESof annual income for the
Second 20% of Income
Group
MALTEPE
45.5 TIMESof annual income for the
first 20% of Income Group
29 TIMES
of annual income for the
Second 20% of Income
Group
Note: First and Second 20% of Income group considered as Low Income People
Neither affordable in Fatsa nor in Maltepe
Market Based Housing ; Doesn`t include Social Housing
Price of Housing is
Price of Housing is
Price of Housing is
Price of Housing is
CHANGE IN LAND DEVELOPMENT PROCESS
Mass Housing On Large
Parcels
One Building - One
Parcel Approach
FATSA
Provide the Incentives for Two Main
Reasons;
To Achieve High Quality
Of Housing, Infrastructure And
Service Areas
Municipality Does Not Want To
Play An Active Role In The Land
Development Process
MALTEPE
Reasons to Provide the Incentives are
given bellow;
Wants Large Mass Housing Areas
Prevent The Development Of
Squatters
Not To Play An Active
Role In The Land Development
Process
THE ROLE OF THE MUNICIPALITY
DESIGN QUALITY
Gated Community
Projects
High Housing Blocks
On-site Infrastructure
Green Area Usage
Parking Areas
Landscaping Projects
Not Contributed Public Infrastructure And Service Areas
LINK TO LAND USE PLAN
Partial Implementations In First
Stage
Implementations Are Distributed
To Every Point Of The City
Increase In Density And
Construction Area Accelerate The
Pressure On Infrastructure And
Service
Insufficient Capacity Of Existing
Roads
LINK TO LAND USE PLAN
Different Policies For Different
Regions
Curtailed Height In Coastal
Regions
Hasn’t Implemented The
Schedule Of Statutory Notes In
The Entire Area In The Same Way
But, Serious Pressure On The
Infrastructure And Service Areas
10
CONCLUDING
REMARKS
MULTIPLE APPROACHES IS BEING USED FOR LAND ASSEMBLY
Housing Market
Density
The Land
Development Process
Design Quality
Links To Land Use
Plans
Role of Municipalities
CONSTRAINTS
 Produced Housing Units Do Not Serve The Needs Of The
Settlements
 Focus On Market Housing, Not Social Housing
 Do Not Comply With Their Vicinity
 Disconnected From Its Surroundings (Gated Community)
 Limited Contributions And Overloading To The Public
Infrastructure And Service Areas
WAY
FORWARD
Carefully Designed Market Led Measure Because These
Incentives Are Open To The Dynamics Of The Market
Right Balance Between Planning Rules Market-led Measures
Link To Land Use Plans
Bring Compatibility In Vicinity
YOU
FOR ANY QUERY! PLEASE CONTACT
ahsansaeedi04@gmail.com
THANK

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Use of Market Led Measures for Land Assembly in Turkey

  • 1. USE OF MARKET-LED MEASURES FOR LAND ASSEMBLY IN TURKEY MUHAMMAD AHSAN RESEARCH ASSOCIATE (URBAN PLANNING) – THE URBAN UNIT M.SC. CITY AND REGIONAL PLANNING (CRP) – UNIVERSITY OF ENGINEERING & TECHNOLOGY (UET), LAHORE
  • 2. Fragmented Ownership Hindrances In Land Assembly Market-led Measures As Solution Impediments To Land Development IMPERITIVE POINTS OF RESEARCH
  • 3. PLANNING AND LAND USE REGULATIONS Operate Property Market Land Values Densities Apply Restriction Convergence Incentives Numerous Others MARKET WORKBETTER
  • 4. Market Incentives for Land Assembly Government has shifted their role from Provider to Facilitator Increase in Private Sector Investments & Public-Private Partnerships
  • 5. Large-Scale Developments Often Require Land Assembly THEORETICAL BACKGROUND Traditional Approaches For Land Assembly Expropriation Raise The Costs Of Development & Social Resistance Purchasing
  • 6. TRADITIONAL APPROACHES OF POLICY INTERVENTION 2 1 4 3 PUBLIC FORCE / COMPULSORY ACQUISITIONLAND READJUSTMENT (LR) REARRANGE THE LAND TITLE MARKET-BASED INCENTIVES • Original Landowners • Potential to Solve Holdout Problem • Majority owners agreed on Land Assembly • Make an application to Land Tribunal for an order to assemble the undivided shares • Used at the time of Compulsion • Regarded As Tailor-made Instruments • Provision of Incentives for Large Scale Development
  • 7. 1 2 3 4 5 MARKET-LED MEASURES FOR LAND ASSEMBLY ‘NEOLIBERAL’ POLICIES Deregulation Free-Market Domination Social Policies Privatization Socio-Economic Flexibility PRINCIPALS
  • 8. ATTRACT PRIVATE SECTOR Release Grants Tax Breaks Incentive Removal of Constraints Encourage Desirable Activities Discourage Non-Desirable Activities Amalgamation of Urban Plots Into Larger Units MARKET-LED MEASURES FOR LAND ASSEMBLY
  • 9. HONG KONG SINGAPORE Plot Ratio; permitted to 7.5 than 6.0 as Usual Density Incentives; Induced Site Assembly MARKET-LED MEASURES FOR LAND ASSEMBLY INTERNATIONAL CONTEXT
  • 10. LAND ASSEMBLY IN TURKISH CONTEXT Existence of Small Parcels Fragmented Ownership Structure Illegal Uses in Urban Areas HINDRANCES IN LAND ASSEMBLY IN TURKEY
  • 11. LAND ASSEMBLY IN TURKISH CONTEXT After 2005, LAW NOs. 5393 & 5366 Enabled Authorities for Land Assembly Agreements With Landowners Expropriation; If No Agreement Parcel Production In Accordance With The Local Physical Plan
  • 12. MARKEY-LED MEASURES IN TURKEY CASE STUDY FATSA MALTEPE Population: 460,955 Census, 2012 Annual Growth Rate = 33.5% From 1990 And 2000 Dynamic Growth Character Population: 74,602 Census, 2012 Annual Growth Rate = 47.9% From 1990 And 2000 Fast Growing Settlement
  • 13. FATSA Predominance of Private Sector in Housing Production “Single Plot-Single Building” Approach Land Readjustment (LR) Yap-sat Style of Housing Supply Some “Mass Housing Cooperatives” No Squatter Housings or illegal Subdivisions MALTEPE Gentle Hillside Topography Dual Structure (Legal-illegal) in the Land Development Process Squatter Houses Were Built on Private and Public Lands Transformed from Squatters Into Apartment Buildings with the Legalization Policy in 1980s Small-Scale to Large-Scale Dwelling Production in the 1990s EXISTING LAND DEVELOPMENT PRACTICE
  • 14. Stage:1 Plan Changes Before 2007 Stage: 2 Schedule of Statutory Notes After 2007 POLICY MEASURES FOR MARKET-LED LAND ASSEMBLY  Incentives in Plot Area Ratio  13 projects are examined out of 22 projects PAR=<1 New Parcel Size * Coefficient + 0.40 PAR=1-1.5 New Parcel Size * Coefficient + 0.35 PAR > 1.5 New Parcel Size * Coefficient + 0.30 If minimum Land Assembly Area is 1500 m2 Incentive; New PAR *PAR = Plot Area Ratio FATSA  43 projects
  • 15. MALTEPE POLICY MEASURES FOR MARKET-LED LAND ASSEMBLY 1- Assembling of at Least Ten Urban Parcels 2- Urban Parcels with a Minimum Size of 5000 m2 3- Urban Parcels not less than 3000 m2 With Separate Blocks INCENTIVE; PAR will be increased by 0.50 Three Conditions  3 projects are examined out of 7 projects
  • 16. 64% Construction Area Increased Person per Hectare 200 410 Density Increase FATSA Stage:01
  • 17. 99% Construction Area Increased Person per Hectare 390 760 Density Increase FATSA Stage:02 Parcel size after the incentives (m2) Housing units produced Total construction area before the incentives (m2) Total construction area after the incentives (m2) Total 154,761.5 2941 149,864.7 297,895.5 Table 2* Market Based Incentives for Land Assemble in the 2nd Stage in Fatsa after 2007 *43 Projects
  • 18. 33% Construction Area Increased Person per Hectare 600 800 Density Increase MALTEPE
  • 19. SUPPLIED HOUSING UNITS AFFORDABILITYFATSA 32 TIMESof annual income for the first 20% of Income Group 18 TIMESof annual income for the Second 20% of Income Group MALTEPE 45.5 TIMESof annual income for the first 20% of Income Group 29 TIMES of annual income for the Second 20% of Income Group Note: First and Second 20% of Income group considered as Low Income People Neither affordable in Fatsa nor in Maltepe Market Based Housing ; Doesn`t include Social Housing Price of Housing is Price of Housing is Price of Housing is Price of Housing is
  • 20. CHANGE IN LAND DEVELOPMENT PROCESS Mass Housing On Large Parcels One Building - One Parcel Approach
  • 21. FATSA Provide the Incentives for Two Main Reasons; To Achieve High Quality Of Housing, Infrastructure And Service Areas Municipality Does Not Want To Play An Active Role In The Land Development Process MALTEPE Reasons to Provide the Incentives are given bellow; Wants Large Mass Housing Areas Prevent The Development Of Squatters Not To Play An Active Role In The Land Development Process THE ROLE OF THE MUNICIPALITY
  • 22. DESIGN QUALITY Gated Community Projects High Housing Blocks On-site Infrastructure Green Area Usage Parking Areas Landscaping Projects Not Contributed Public Infrastructure And Service Areas
  • 23. LINK TO LAND USE PLAN Partial Implementations In First Stage Implementations Are Distributed To Every Point Of The City Increase In Density And Construction Area Accelerate The Pressure On Infrastructure And Service Insufficient Capacity Of Existing Roads
  • 24. LINK TO LAND USE PLAN Different Policies For Different Regions Curtailed Height In Coastal Regions Hasn’t Implemented The Schedule Of Statutory Notes In The Entire Area In The Same Way But, Serious Pressure On The Infrastructure And Service Areas
  • 26. MULTIPLE APPROACHES IS BEING USED FOR LAND ASSEMBLY Housing Market Density The Land Development Process Design Quality Links To Land Use Plans Role of Municipalities
  • 27. CONSTRAINTS  Produced Housing Units Do Not Serve The Needs Of The Settlements  Focus On Market Housing, Not Social Housing  Do Not Comply With Their Vicinity  Disconnected From Its Surroundings (Gated Community)  Limited Contributions And Overloading To The Public Infrastructure And Service Areas
  • 29. Carefully Designed Market Led Measure Because These Incentives Are Open To The Dynamics Of The Market Right Balance Between Planning Rules Market-led Measures Link To Land Use Plans Bring Compatibility In Vicinity
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