An owner whose building is heading for renewal has two routes, and they require entirely different calculations:
- Build-for-share: you give up the land and receive units in the new building.
- Selling to the developer: you sell your land share, take cash and leave the process.
This is the question we are asked most often in Küçükçekmece. The answer has nothing to do with the property's value and everything to do with your circumstances.
The fundamental difference: who carries the risk?
In build-for-share you carry it. If the developer fails to finish, runs late, goes under or does not deliver the promised unit, that is your problem. In return you end up owning a flat in a completed building — worth markedly more than your land share is today.
In a sale you sell the risk. You take the money and go. Whether the building finishes, when, and how much it appreciates are no longer your concern. In return you take no share of that appreciation.
That one-sentence difference decides the whole question: you are choosing between return and security.
Comparison
| Build-for-share | Sale to developer | |
|---|---|---|
| Who carries the risk | The owner | The developer |
| When cash arrives | On handover (years away) | Immediately |
| Rent during the process | Owner pays | None |
| Share of appreciation | Yes | No |
| Process management burden | High | None |
| Dependence on other owners | High | Low |
| Complexity | High | Low |
When build-for-share makes sense
If you do not need the cash. You will pay rent elsewhere throughout and earn nothing from the property. You need income or savings to cover that.
If you can tolerate waiting. The span from risk assessment to handover varies considerably from plot to plot and mostly depends on how quickly the owners agree.
If the building and location are strong. A high floor area ratio, a large plot and a good position increase the number of units a developer will offer. In neighbourhoods within walking distance of the metrobüs — Fevzi Çakmak, Cennet — the share ratio runs above the district average.
If you have the time and patience to manage it. Owner meetings, developer negotiations, contract discussions, construction monitoring — all take time.
When selling makes sense
If you need the cash. Without the luxury of waiting there is nothing to discuss.
If age or health makes a long process difficult. A flat handed over in five years does not carry the same value for everyone.
If you cannot agree with the other owners. This is where build-for-share most often stalls. In a deadlocked building, selling your land share may be the only way out of years of uncertainty.
If you are not positioned to carry the risk. For an owner with a single property and no other income, developer risk weighs far more heavily than it does for an investor with a diversified portfolio.
If the complexity is beyond what you want to take on. That is a valid reason and nothing to be embarrassed about.
A third route: revenue sharing
Less well known, but suitable on some plots. The developer builds, the units are sold and the sale proceeds are split in an agreed ratio.
- The owner receives cash rather than a flat — but as sales complete, not at handover.
- In a good market the return can approach build-for-share.
- Sales risk is shared: if the units do not sell, the income is delayed.
In this model the critical clause is who sets the sale prices. If the developer can set them alone, their incentive to price low for a quick sale works against you.
Five questions to decide
- Can you pay rent throughout the process? If not, build-for-share is not for you.
- Can you agree with the other owners? If not, a sale is more realistic.
- How long can you wait? With a horizon under three years, look at selling.
- Can you carry developer risk? Be careful if this is your only property.
- Are the plot's floor area ratio and position strong? If so, build-for-share returns markedly more.
What to do on either route
Whichever you choose:
- Establish the real value of your land share independently. Commission an appraisal. The developer's valuation comes from the other side of the negotiation.
- Pull the block-and-parcel record. Floor area ratio and storey limits directly determine how many units come to you.
- Speak to at least three developers. Do not decide on one offer; share ratios can differ substantially.
- See the developer's completed work. Not references — finished buildings.
- Work with a lawyer. On both routes the contract is decisive.
A closing word
This is a personal decision, not a technical one. The right answer can differ for two owners in the same building — and usually does.
An agency telling you "build-for-share is more profitable" has given you half a sentence. The more profitable route and the right route for you may not be the same. In Küçükçekmece we put the five questions to owners first; the portfolio and developer conversation starts after that.