Turkey sets maximum residential rent increase rate as 25%


According to the Law on the Amendment of the Legal Profession Law and the Turkish Code of Obligations (“Law”) published on the Official Gazette dated 11.06.2022 and numbered 31863, the increase rate of the rent fees of residential properties determined under lease agreements which will be renewed until 01.07.2023, shall not exceed 25 % (twenty-five percent) of the rent amount of the previous year.

According to the Turkish Code of Obligations No. 6098, rent increase rates which are applied upon the renewal of lease agreements shall not exceed the consumer price index announced by the Turkish Statistical Institute for the relevant month of the renewal. Having said that, as per the Law, a provisional article has been added to the Turkish Code of Obligations No. 6098 where the rent increase rates which will be determined upon the renewal of the residential lease agreements until 01.07.2023 shall not exceed 25% (twenty-five percent) regardless of the consumer price index.

The renewed residential rent fees which correspond to an amount higher than 25% (twenty-five percent of the rent fee of the previous year shall be deemed invalid in terms of the exceeding amount.

For more information on lease agreements in Turkey, contact your CMS client partner or local CMS experts: Dr. Döne Yalçın or Arcan Kemahlı.