The city of Istanbul is undergoing rapid socio-spatial transformation due to globalization and neoliberal policies. These policies lead to social segregation by creating unequal income distribution and employment opportunities. This rapid transformation is changing housing demand and supply. Urban elites flee from the chaos and insecurity of the city and start to move into gated communities (GCs) located in the urban periphery. These gated communities are the newest form of housing production in Istanbul. The main reasons for upper income groups to choose to live in GCs are prestige and privacy, while the new lifestyle offered by these projects is more important for the middle income groups. Security is a principle reason for every income group’s choice to live in GCs. The local and international housing market continues to produce GCs that advertise security, a new lifestyle and prestige. GCs are determining Istanbul’s peripheral urban development and sprawl pattern. Therefore, the inner dynamics of GCs need to be studied to develop optimum planning policies. This study examines the development of GCs in Istanbul, the new lifestyle they offer and their effects on planning