Kanal Istanbul Construction Resumes Amid Imamoğlu Arrest, Marketing to Arab Investors Intensifies

As Istanbul Metropolitan Municipality (IMM) Mayor Ekrem İmamoğlu remains behind bars following his controversial arrest on corruption charges, Türkiye’s most polarizing infrastructure project—Kanal Istanbul—is gaining renewed momentum.

According to recent reports, construction of 24,000 residential units has quietly begun near the Sazlıdere Dam, an area along the proposed canal route. The development coincides with a fresh wave of promotional campaigns targeting Arab investors, raising concerns about foreign real estate ownership and the long-term impact on Istanbul’s urban and environmental landscape.

Construction Moves Ahead in Mayor’s Absence

In a social media post from prison, İmamoğlu implied that government-backed entities have taken advantage of his absence, stating: “You saw my absence as an opportunity to break ground.” This comment was in reference to the housing development near Sazlıdere, where groundwork is reportedly underway for tens of thousands of new residences.

İmamoğlu had been a vocal critic of the Kanal Istanbul megaproject, calling it “a disaster for Istanbul’s ecological and urban future.” His arrest in March 2025 amid a sweeping corruption probe has thrown the opposition into turmoil, and critics argue that development around Kanal Istanbul has since accelerated without oversight.

Arab Media Resurfaces Real Estate Ads

The renewed interest is not limited to domestic media. Ürdün-based real estate company Go Smart has resumed airing promotional videos on YouTube, advertising investment opportunities in Kanal Istanbul to Gulf-based buyers. These videos feature aerial footage of Erdoğan visiting the region, branding the project as a “crown jewel of Türkiye’s future.”

One of the most prominent pitches claims that “zoning approvals have expanded” and that “land value is rising rapidly.” Go Smart markets the initiative as a “high-return, one-of-a-kind investment opportunity.”

CHP: “These Projects Are Not for Turkish Citizens”

CHP Başakşehir District Chair Beyzade Kayabaşı sharply criticized the developments, accusing the government of diverting public resources toward luxury real estate instead of meeting social housing needs.

“It’s virtually impossible for Turkish citizens to afford these homes,” Kayabaşı said. “This is a project not for the people, but for profit. While earthquake victims wait on unfinished social housing, luxury flats for foreign investors are rising around Kanal Istanbul.”

Kayabaşı further noted the delays in social housing by TOKİ, the government’s housing agency, particularly in earthquake-hit provinces, calling the imbalance “an insult to public needs.”

Environmental and Urban Concerns Resurface

The Kanal Istanbul project has long been mired in controversy, with critics citing potential damage to Istanbul’s water basins, disruption to regional urban planning, and environmental degradation. The sudden acceleration of the project amid İmamoğlu’s legal troubles has reignited opposition, especially from environmentalists, urban planners, and opposition politicians.

“This is not just about infrastructure,” said one urban policy expert. “This is about reshaping Istanbul in the absence of democratic oversight.”