There can be viewed an expansion of construction activity in Turkey with the beginning of the new millennium. The triggering causes can be stated as migration, urban population growth, awareness on disaster risks, etc. Urban regeneration has been viewed as a panacea for the solution of urban problems. New laws and regulations have been enacted regarding transformation. These developments encouraged private and public sector to replace the apartments that formed the urban fabric from the 1960s with high-rise building blocks. This new type of development led to an increase in population density in a tight urban fabric and a weakening in social relations in city centers. On the other hand, in newly developing urban areas, gated communities have increasingly become common which include a variety of services such as commercial and leisure activities besides accommodation. These communities restrict public access and have negative effects on social relations. The isolation of the communities from the “others” cause social and spatial segregation, also bringing forth the fragmentation of the city. While cities in Turkey in the early 21st century developed so fast, they were confined in a restricted urban area until the early 20th century. The traces of Ottoman settlement idea can be read from the historic city centers where housing areas were developed around community centers including a variety of facilities called kulliye. These building complexes which include religious, social, cultural, accommodation, health and educational services helped to increase social relations among citizens. These complexes functioned as urban catalysts for promoting new neighborhood areas around and developing a sense of community. The scope of this study is to discuss the logic behind this idea within the context of evolution of urban development approach in Bursa from Ottoman Era until today. The research aims to open up new visions for the development of livable and socially coherent residential environments.