The Constitutional Court has Annuled the Rule Stipulating that the Entire Increased Value as a result of the Zoning Plan Amendment Shall be Paid to the Administration
With the amendment to the Zoning Law No. 3194, it was regulated that the entire amount of the increase in the value of the real estate as a result of the amendment in the zoning plan made upon the request of the real estate owners would be paid to the administration.
An application for abstract review of the aforementioned rule was made on the grounds that the transfer of the entire value increase gain resulting from the amendment of the zoning plan to administration restricts the right to property.
The Constitutional Court has ruled that the provision, which stipulates that the real estate’s entire increased value resulting from the amendment of the zoning plan shall be paid to the administration as value increase gain, is not in line with reasonable and acceptable measures, imposes an excessive burden on the owner, disrupts the fair balance that should be maintained between the public interest and right to property, and therefore, results in a disproportionate restriction on the right to property. As a result, the Constitutional Court has decided to annul the provision regarding the payment of the entire value increase gain to the administration. The annulment decision of the Constitutional Court dated 18.05.2023 and numbered 2020/42 E., 2023/99 K. has been published in the Official Gazette dated 04.10.2023 and numbered 32329.
The annulment decision will enter into force on 04.07.2024. Until this date, it is foreseen that a new provision will enter into force, which stipulates that a more reasonable proportion of the value increase gain will be paid to the administration. It might be worth considering, if possible, not making a zoning plan amendment that may cause an increase value gain, until the new provision is introduced.
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