Turkish Landlords and Tenants to Follow Consumer Inflation Rates for Rent Hikes Starting Today
The 25% cap on rent increases has officially ended today, marking a return to Consumer Price Index (CPI)-based adjustments for landlords and tenants. For the past two years, a 25% limit on rent hikes was enforced during lease renewals. With the cap lifted, rent increases will once again be determined by consumer inflation rates.
Landlords can no longer exceed the CPI limit, and no new rent increases can be demanded for leases renewed before July of this year. The rent increase rate will now be based on the 12-month average inflation rate.
For July, the rent hike rate will be determined by the inflation data for June, which is set to be announced on Wednesday, July 3, 2024, at 10:00 AM. As of May, the 12-month average inflation was reported at 62.51%.
Consequently, commercial property owners with expiring leases have been able to increase rents by up to 62.51%, while the 25% cap was still in effect for residential properties. With the cap now removed, residential rents will also follow the same CPI-based adjustment method.
This change brings a significant shift for both landlords and tenants, aligning rent increases with the broader economic conditions and inflation rates in Turkiye.
Source: Dunya.com / Prepared by Irem Yildiz