Implications of the gap between the supply and demand of urban land in the Metropolitan areas of economically developing countries are reflected in the high costs of residential land and high land-use intensities. Social and technical infrastructure put a heavy burden on the municipalities with limited resources and restrict the supply of urban land and affect its value. This article examines the case of Istanbul Metropolitan city, with its limited economic resources and high population growth rates. The analysis is concerned about the “sustainable development” of Istanbul and addresses the spatial concepts like compactness, density and quality of life. While it is widely accepted that there is no strong correlation between density and quality of life, “density” is still a basic tool used in planning to achieve a certain type of settlement. The number of people, dwelling units, amount of open space, green space, recreation etc. will change according to density decisions. The study aims to document the land-use intensity values and the ratios of Open Space, and Livable Space and to analyze the differentiation of these ratios in different residential environments with different house types in Istanbul. The land-use intensity measures that are normally used in urban planning in Turkey are basically: the Floor Area Ratio and the Building Coverage Ratio. These two ratios help to control the maximum amount of construction on a site and the maximum amount of land to be covered by construction. They are related to land values and density decisions. But they do not help to control the amount of open space especially the open space used by pedestrians in residential areas. Also, measures like the amount of car parks and recreational areas that are related to the quality of the physical areas are not considered. The methodology used in the survey comprises the data collection and analysis of the parameters affecting land use intensity and ratios of open space, of parking areas, of recreation space and of livable space. Data has been collected in 150 randomly selected streets representing different residential areas of Istanbul. Land-use intensity parameters like the Floor Area Ratio, Building Coverage Ratio, Open Space Index, Recreation Area Ratio, Parking Area Ratio and Livable Space Index, were calculated for each of the 150 points within an area of 100 m. radius around them and the results were compared with land values and optimum standards given for different house types. The results show that the randomly selected points (residential buildings) on 150 streets represented all types of residential areas in Istanbul. The results related to the Floor Area Ratio that is used in urban planning to control land use intensity in Turkey show that in the large majority of residential areas the ratio is between 1.00 and 3.00. The results related to the Building Coverage Ratio show that in more than three thirds of the residential areas the ratios are over 0.25. These findings indicate that Istanbul is a compact city and that the buildings are constructed very densely. The results related to the Open Space Index show that more than one-third of residential areas have lower ratios (less open space compared to the total construction) than the expected minimum ratios. Results related to the Livable Space Index show that in more than forty percent of the residential areas the ratio is below minimum standards. It was observed that as the as the land use intensity ratios like the Floor Area and the Building Coverage Ratio increased the Open space Ratio and the Index of Livable Space decreased. The most critical situations were observed in residential areas where the Floor Area Ratios were over 1.50. Though no direct correlation was observed between the land values and the Livable Space Index, a complex relationship between the Floor Area ratio, the Livable Space Index and House Prices was observed. Highest prices were observed in areas with lower than 1.50 Floor Area ratios and related optimum Livable Space Indexes. This finding of the research that the inhabitants in Istanbul pay higher prices for higher standards clearly indicates that they are sensitive towards the standards of livable space. It was also important to see that residential areas with more than 1.50 Floor Area Ratios had problems in providing acceptable standards of Livable Space. In residential areas with higher land use intensities higher design skills and more careful organization of livable space is necessary. Otherwise as observed in the existing high density, unplanned areas in Istanbul, low quality of life will be widespread in the residential areas of Istanbul. Therefore, urban planners and Planning Agencies should develop a good understanding of the Livable Space Index and use it to overcome the degradation of the quality of life in the residential areas of Istanbul.