Dolmabahçe Palace, located in the Beşiktaş district of Istanbul, on the European coast of the Bosphorus, served as the main administrative center of the Ottoman Empire from 1856 to 1887 and 1909 to 1922 (Yıldız Palace was used in the interim).
Dolmabahçe Palace was ordered by the Empire’s 31st Sultan, Abdülmecid I, and built between the years 1843 and 1856. Previously, the Sultan and his family had lived at the Topkapı Palace, but as the medieval Topkapı was lacking in contemporary style, luxury, and comfort, as compared to the palaces of the European monarchs, Abdülmecid decided to build a new modern palace near the site of the former Beşiktaş Sahil Palace, which was demolished. Hacı Said Ağa was responsible for the construction works, while the project was realized by architects Garabet Balyan, his son Nigoğayos Balyan and Evanis Kalfa (members of the Armenian Balyan family of Ottoman court architects).
The construction cost five million Ottoman gold lira, or 35 tonnes of gold, the equivalent of ca. $1.5 billion in today’s (2013) values. This sum corresponded to approximately a quarter of the yearly tax revenue. Actually, the construction was financed through debasement, by massive issue of paper money, as well as by foreign loans. The huge expenses placed an enormous burden on the state purse and contributed to the deteriorating financial situation of the Ottoman Empire, which eventually defaulted on its public debt in October 1875, with the subsequent establishment in 1881 of financial control over the “sick man of Europe” by the European powers.
The palace was home to six Sultans from 1856, when it was first inhabited, up until the abolition of the Caliphate in 1924: The last royal to live here was Caliph Abdülmecid Efendi. A law that went into effect on March 3, 1924 transferred the ownership of the palace to the national heritage of the new Turkish Republic. Mustafa Kemal Atatürk, the founder and first President of the Republic of Turkey, used the palace as a presidential residence during the summers and enacted some of his most important works here. Atatürk spent the last days of his medical treatment in this palace, where he died on November 10, 1938.
Today, the palace is managed by Milli Saraylar Daire Başkanlığı (Directorate of National Palaces) responsible to the Grand National Assembly of Turkey.