Industrial Land Allocation in a Turkish OSB: Process, Terms and Title Restrictions

1. How allocation differs from a purchase

The counterparty is the OSB legal entity, not a seller. The parcel is granted for the declared investment and carries obligations tied to completing it.

A price comparison alone therefore does not decide the matter. The deadlines, transfer restrictions and infrastructure obligations in the allocation agreement shape the total cost and the exit options.

2. Sector and parcel fit before applying

Not every OSB accepts every activity; mixed and specialised zones have different sector conditions. Before applying, test in writing whether the activity fits the zone and whether the parcel can carry the production programme.

• Fit between the activity and the zone’s sector conditions
• Parcel size for covered area, yard, truck manoeuvring and expansion
• Electricity, natural gas, water and wastewater treatment capacity and connection terms
• Environmental permits and fire requirements for the activity
• Access to ports, motorways and suppliers

OSB options in Kocaeli

According to the Kocaeli Governorship, 14 organised industrial zones and 37 ports operate within the province. Zones along the Gebze, Dilovası, Çayırova and İzmit corridor differ in sector conditions, occupancy and parcel sizes.

Vacant parcels, prices and sector eligibility change over time. When comparing, obtain written information from each zone management on the same date and measure logistics access on site.

3. Price and payment plan vary by OSB

There is no single national tariff for the square-metre price, down payment or instalments. Obtain the current price and payment plan in writing from the management of the zone you are considering.

A budget that lists only the land price is incomplete. Ask separately about infrastructure participation shares, connection fees, common-expense dues and any treatment plant contribution.

4. Permits are issued by the OSB

Under Law No. 4562, permits and licences for land use and for the design, construction and use of buildings and facilities inside an OSB, as well as business opening and operating licences, are issued and supervised by the OSB.

Architectural, structural, mechanical, electrical and fire designs are therefore prepared to the zone’s own plan, plan notes and approval procedure. The route differs from that of an industrial parcel under a municipality.

5. Transfer ban, buy-back right and deadlines

The Law provides that allocated land cannot be sold, transferred or assigned before the debt is fully paid and the facility is in production; this is annotated on the title. It also provides that title is issued with a buy-back annotation to participants whose facility is not yet in production.

Deadlines for obtaining the building permit and starting production are set out in the implementing regulation in force and in the allocation agreement. Missing them can lead as far as cancellation of the allocation; read the current deadlines and force majeure terms before signing.

6. Inside an OSB versus outside

• Inside, infrastructure and the approving authority are in one place; outside, municipal and utility connections are handled one by one.
• Inside, transfer and use restrictions are annotated on the title; outside, disposal is freer but planning and infrastructure risk stay with the investor.
• Inside, there are sector conditions and an investment deadline; outside, eligibility is checked against the zoning plan and environmental legislation.
• In both cases, ground conditions, power capacity and logistics access should be measured on site and compared.

7. Taking over an existing facility or parcel

For a second-hand facility or parcel in an OSB, review the title annotations, any debt owed to the zone, the existing building permit and occupancy permit, and whether the operating licence suits the new activity. Do not pay before obtaining the zone’s written position on the transfer.