Marmara Sea and Black Sea connected with renowned Bosporus surround Istanbul, the city, which owns the privilege of bridging Europe and Asia. Besides such inland seas; forests and wetlands fragmented around and in the city maintain the natural cycle in the region. However, Istanbul as a fast developing urban area witnesses environmental issues like many other urban areas in global scale. Rapid economic and population growth of the city increase the pressure on above mentioned natural resources. Sustainable development of built environment is one of the best solutions in order to mitigate environmental damages of urban areas. The solution comes with green construction projects and systems yet the city and the market itself have barriers to block or slow the process of sustainable development. Identification of such barriers and reviewing international sustainable development practices paves the way for generating recommendations for environmentally friendly urban expansion in Istanbul. Survey targeting market professionals was conducted to identify sustainable development barriers in Istanbul and in order to address such barriers the thesis refers to conducted interviews and international practices presented in the literature review. The thesis draws economic, market and governmental recommendations which are particularly focused on financial incentives, raising awareness and enacting green laws involving all stakeholders of construction and real estate market.