The price of rental housing Increasing in Turkey is regulated by law
On June 11, 2022, the official Turkish government gazette Resmi Gazete published changes to the Debt Law (6098 sayılı Türk Borçlar Kanunu), which was valid on July 1, 2023.
Rent increases now limited by law. This was preceded in Turkish Justice Minister Bekir Bozdag speech, he announced the authorities’ decision to regulate rent increases. The situation with the increase in prices for renting apartments has been heating up for a long time. Against the backdrop of rising prices, the owners began to significantly increase the rent to tenants, but they did not always agree with the amount of the increase. The situation is also heating up due to the unprecedented demand for apartments over the past 3 months.
Now, according to the changes under the new decision of the Turkish government, the agreement to extend the rental price will be considered valid only if the increase in the fee does not exceed 25% of the rental price for the previous year.
Previously, rent increases in Turkey were not supposed to be higher than the average consumer price index (Tüketici fiyat endeksi – TÜFE) over the past 12 months. In May, with a TÜFE inflation rate of 73.5%, owners could raise rent by 34.46%, for example.
The full text of the article on rent increase regulation in Turkey you can find in the Gazette dated 11.06.22:
ARTICLE 4 – The following provisional article has been added to the Turkish Code of Obligations dated November 1, 2011 under the number 6098.
“ARTICLE 1. With regard to rent for residential premises, agreements regarding rent applicable in extended rental periods between the date of entry into force of this article and 07/01/2023 (including this date) are valid provided that it does not exceed twenty-five percent from the rental price for the previous year of rent. If the rate of change of the consumer price index for the previous rental year is less than twenty-five percent compared to the twelve-month average, the rate of change is considered valid. This rule also applies to leases for more than one year. Contracts entered into in excess of these rates are void in terms of the amount of the excess. The provision of this paragraph shall also apply to decisions made by a judge on the basis of Article 344, paragraph two”.