Gated communities are ‘physical private areas with prohibited access and directed with special rules where outsiders and insiders exist''. Our aim is to investigate the phenomenon which is one of the most important driving forces in housing market from the perspective of developers. The data is obtained from two questionnaires filled out by developers. The first questionnaire aims to understand the developers'' approaches to gated communities, while the second one addresses the main characteristics and development process of gated communities. On the basis of the characteristics of gated communities a physical typology is defined. 4 types of gated communities, viz. gated towers, gated villa towns, gated apartment blocks, and gated towns, constitute the typology in Istanbul. The methodologies; frequency, cross-tabulation and logistic regression are deployed to evaluate the data. According to logistic regression analysis, developers'' name is the main criterion to invest and develop a successful project. The results show that gated communities have radically transformed urban environment, however local authorities have no specific strategies for this development.