
How would reforms made on zoning policies in Istanbul affect the SMEs?
Ayşe Umay Bahçivan
23/02/2026
Urban zoning reforms in Istanbul, particularly those related to rezoning, urban transformation, and large-scale housing projects, have reshaped the city’s economic landscape, making their impact on SMEs, which constitute over 99% of enterprises in Turkey12, an urgent issue for both policymakers and local communities. This study provides an overview of how urban planning policy reforms in Istanbul affect SMEs. Based on existing literature, statistical data, and case studies, the study highlights the displacement of SMEs from central areas, infrastructure inequalities in peripheral regions, and regulatory hurdles that increase costs and instability. The analysis shows that urban planning reforms, focusing on large-scale or luxury housing and infrastructure projects, have overlooked SMEs, despite their overwhelming presence in Turkey’s economy. The study concludes that without inclusive and SME-sensitive reforms, Istanbul's urban development will continue to prioritize showcase projects over sustainability. Policy recommendations include participatory planning, SME-friendly incentives, infrastructure support, legal aid, and the protection of local economic ecosystems.