Kat Karşılığı: How does shared construction work in Turkey?
In Turkey, one of the most popular ways of cooperation between land owners and construction companies is the Kat Karşılığı - literally "in exchange for floors". This approach has long established itself as a profitable alternative to the direct sale of land and is widely used in developments in major cities and tourist areas such as Alanya, Antalya, Istanbul and Izmir;
What is Kat Karşılığı?
Kat Karşılığı İnşaat is a form of agreement whereby:
The owner of the plot provides land for development.
The construction company takes care of all construction costs (design, permits, building materials, labor, etc.).д.).
Once the project is completed, the finished propertyis divided between the land owner and the developer in a predetermined proportion.
Simply put, it is an exchange of land for square meters.
How is real estate divided?
The proportions depend on market value of the site, location, size of development and agreed terms. Most often the ratio is:
40-60% in favor of the landowner in tourist or elite areas;
30–70% - if the land is located in less liquid zones or the developer assumes additional risks.
For example, when building a residential complex of 20 apartments under a kat karşılığı agreement, the owner of the plot may receive 8 apartments and the developer may receive 12.
Advantages for the land owner:
✅ No investment required - land remains the main capital
✅ Obtaining finished real estate in ownership
✅ Possibility of subsequent sale of apartments or renting
✅ Legally protected agreement
Advantages for the developer:
✅ No land purchase costs
✅ Quick project start-up
✅ Possibility to attract additional investments under an already signed contract
What risks exist?
As in any investment transaction, it is important to consider possible risks:
Construction schedule violation
Unscrupulous builder
Legal difficulties if the contract is incorrectly drafted
Disputes over the quality of workmanship
That is why it is necessary to conclude a formal agreement at a notary, involve a lawyer and monitor the execution of each stage of the project.
How to make a Kat Karşılığı agreement?
Land valuation - the market value of the site and building permits are analyzed.
Choosing a reliable developer - it is important to check the reputation and realized projects.
Legal review and contract preparation - the contract should include clear terms and conditions: deadlines, share sizes, construction standards, penalties for delays, etc.д.
Notarization - the document is signed officially and recorded in the land registry.
Conclusion
Kat Karşılığı is effective and mutually beneficial way of development in Turkey, especially if you own the land and want to make the most of it. However, the success of such a deal depends on professional approach, a reliable partner and legally competent registration;
