The selection of new settlement areas and the construction of safe buildings, as well as rendering built-up areas safe, are of great importance in mitigating the damage caused by natural disasters. Most cities in Turkey are unprepared for natural hazards. In this paper, Canakkale, located in a first-degree seismic zone and sprawled around the Sartcay Delta, is examined in terms of its physical vulnerability to natural hazards. Residential areas are analysed using GIS (geographic information system) and remote-sensing technologies in relation to selected indicators. Residential areas of the city are divided into zones according to an evaluation of geological characteristics, the built-up area's features, and urban infrastructure, and four risk zones are determined. The results of the analysis show that the areas of the city suitable for housing are very limited. In addition, the historical centre and the housing areas near Sartcay stream are shown to be most problematic in terms of natural disasters and sustainability.