Real EstateTurkiye

Rent Increase Cap Ending: How Will July Rental Adjustments Impact Landlords and Tenants?

With the 25% cap on rent increases set to expire in July, landlords and tenants face new challenges in determining rental adjustments based on inflation rates. What lies ahead for the rental market?

A significant change is approaching in the rental market as the 25% cap on rent increases will come to an end in July. Initially introduced to prevent excessive increases, the measure has set a fixed rate for rental hikes for tenants over the past two years.

Starting July, however, the consumer price index (CPI) will become the determining factor for rental adjustments. Tenants will base their rental renewal decisions on the average CPI over the past 12 months. June’s inflation data will be announced on Wednesday, July 3, 2024, at 10:00 AM, clarifying the rental adjustment rates for July.

Last month, the average inflation rate stood at 62.51%, allowing business owners to increase rents by this percentage. However, the 25% cap still applies to residential rents, thus this rate was not applicable to landlords.

Experts anticipate normalization in the rental market with the removal of the rent increase cap. They predict contracts will return to normal, with prices stabilizing for a period and real decreases in rentals expected as inflation recedes.

These changes in the rental market mark a significant turning point for both landlords and tenants. As of July, uncertainties in rentals will subside, paving the way for markets to adapt to the new era.

Source: Dunya.com / Prepared by Irem Yildiz

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