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A massive new district, called Yenisehir, the New City, is being built in Istanbul's northwest, near the proposed Canal Istanbul area.
Turkish authorities describe the vast housing drive as a social project for low-income families in a city that goes through a massive housing crisis amid the economic crisis.
Despite the housing need, however, Istanbul's expansion and the new projects create environmental concerns.
Around Sazlibosna and Hacimasli, neighborhoods in the district of Arnavutkoy close to Istanbul Airport, construction sites now dominate the slopes.
The housing schemes in Istanbul's new district belong to the Housing Development Administration (TOKI), the agency running the social housing project in the area.
Locals interviewed by BBC Turkish say they already talk about “a new city” forming in the north of Istanbul.
Real estate consultant Mehmet Emin Tastan, who has lived in Arnavutkoy since 1999, recalls how the district used to be introduced through inner-city references.
The district includes Istanbul Airport, opened in 2018, as well as sections of the North Marmara Highway.
It also hosts Darulaceze Sosyal Yasam Sehri, a large care complex opened in 2023, and the construction of a luxury outlet center called Florentia Village between the airport and the town.
Much of this transformation is tied to what official plans call the Yeni Sehir Rezerv Yapi Alani, or New City Reserve Construction Area, on the European side of Istanbul. The area covers a large section of Arnavutkoy and parts of neighboring Basaksehir.
The Environment, Urbanization, and Climate Change Ministry is reported to have designed the project in seven stages.
So far, plans for three stages have been announced, spreading over a very wide area that includes twelve neighborhoods in Arnavutkoy and three in Basaksehir. Some parts of this zone are still on paper, but in others, construction is already in full swing.
The changes around the Sazlidere reservoir are also at the center of an institutional dispute.
The reservoir, fed largely by rainwater, was built in the mid–1990s and has long been counted among Istanbul’s key drinking water resources.
Istanbul Metropolitan Municipality (IMM) and several professional chambers have taken zoning changes and individual projects in the area to court.
In a social media statement in April, imprisoned former Istanbul mayor Ekrem Imamoglu, who was arrested over massive corruption charges, argued that “in the name of the so-called ‘Canal Istanbul’ plunder project,” construction of 24,000 homes had started around Sazlidere, which he described as one of the European side’s main water sources.
In May, Istanbul Water and Sewerage Administration (ISKI) refused to connect drinking water to the new homes, prompting criticism from the Arnavutkoy municipality.
ISKI responded that the TOKI Sazlidere housing project lies inside the Yeni Sehir reserve area, which in turn falls within the protected zones of the Sazlidere drinking water basin under its regulations.
The institution described the ongoing construction as “illegal structures” and said water cannot be supplied to such buildings, noting that demolition notices had been sent to those concerned.
The Environment, Urbanization, and Climate Change Ministry underlines in its note that the project is a social housing program.
It says the homes are not luxury units but part of a TOKI initiative to build 50,000 dwellings for low-income residents living with earthquake risk in Istanbul.
According to the ministry, around three million people applied, lots were drawn, and applicants paid their initial fees.
Officials also stress that all procedures follow existing zoning plans, which they say were drawn up after taking the opinions of all relevant institutions.
They add that implementation plans have been approved by the ministry and that building permits have been obtained for all housing blocks under construction.
In a separate speech in Arnavutkoy in April 2025, Minister Murat Kurum strongly rejected claims that the work formed part of the Canal Istanbul project.
He said critics “insist on not understanding” and “do not listen” when the government explains that the site is part of what it calls the largest social housing program in the history of the republic, involving 250,000 homes nationwide.
Kurum also responded to opposition claims that the new apartments would be sold to foreign buyers.
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