The area in the then outskirt of Istanbul City, which Ataköy today covers, belonged to the Turkish military, and was called Baruthane (literally: gunpowder magazine).

In the 1950s, the government of Prime Minister Adnan Menderes (in office (1950–1960)) transferred the property to the state-owned realty business bank Emlak Bank for envelopment as a satellite city of affordable housing for middle income households.

The project included 12,000 apartments, three hotels, beach, clubs, shopping malls, cultural center and sports facilities.

[2] Ataköy is one of the most green areas in İstanbul because it was constructed in the 1950s[3] as one of the first planned collective housings.

The dense housing was stopped by opinion of court due to infringement of coastal law.