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OECD report released: Turkey tops the world in rent increases

Turkey has reached the top among OECD countries in rent increases. Rents are rising rapidly following the removal of the 25 percent rent increase cap and the implementation of inflation-based hikes. As of July, the 12-month average inflation indicator was determined to be 65.93 percent.

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With the economic crisis and rising cost of living, the rental crisis in Turkey is growing every day. The process that began with the removal of the 25 percent rent increase cap has further strained relations between landlords and tenants. Turkey has taken the top spot in rent increases among OECD member countries.

The annual increase rates in the Housing Rent Price Index for countries that are members of the Organisation for Economic Co-operation and Development (OECD) have been announced. In the report, Turkey ranked first in the increase in the Housing Rent Price Index.

According to OECD data, the Housing Rent Price Index in Turkey reached a level of 663.

Turkey was followed by Hungary with 181 points and Lithuania with 172 points. Japan ranked last with 100 points.



RENT INCREASE CAP ENDED AS OF JULY 1, 2024

The "25 percent increase cap" policy, which was implemented in June 2022 to combat the rental crisis, ended as of July 1, 2024.

Starting from July 2024, landlords will be able to apply rent increases based on the 12-month CPI average announced for that month in rental contracts to be renewed in the coming months.

The Turkish Statistical Institute (TÜİK) recently announced the inflation figures for July. According to TÜİK data, the Consumer Price Index (CPI) recorded an increase of 3.23 percent in July compared to the previous month. Annual inflation fell to 61.78 percent.

The 12-month average inflation indicator, which determines the rent increase ceiling, was announced as 65.93 percent.