Over the centuries, the medieval Topkapı Palace, built right after the conquest of Constantinople, has become obsolete. It was lacking modern style and comfort. In 1843, the 31st Sultan of the Ottoman Empire, Abdulmejid I, decided to build a new, modern palace on the European waterfront of the Bosphorus strait in Istanbul.
Dolmabahçe Palace’s construction cost was the equivalent of today's 2 billion dollars. This sum corresponded to a quarter of the annual tax revenues of the Ottoman Empire. It was not the only palace built by the same sultan. Abdulmejid I also commissioned the construction of the summer Ihlamur Pavilion with a gilded interior. His successor built Beylerbeyi Palace. Such enormous expenses were a burden on the state's finances, wrecking the country's economy. In 1875, Turkey was unable to pay off loans and defaulted on its debt. The construction of new palaces ruined the country.
