Development that will upset millions of tenants: Mehmet Şimşek's decision on the '25 percent rent increase cap'!

The poor course of the economy has brought with it a housing and shelter crisis. Although the government imposed a 25 percent cap on rent increases, landlords and tenants continue to face each other in courtrooms.

Sözcü columnist Nedim Türkmen in his column today Treasury and Finance Minister Mehmet Şimşek's notes from a closed-door meeting with representatives of the business world. In his article, Türkmen stated that Şimşekannounced that the 25 percent rent increase cap applied to residential properties will be lifted.

Here is the relevant section of Nedim Türkmen's article:

Today, I want to share with you important points I gathered from the answers given by Mr. Şimşek to questions directed at him during a private dinner meeting he held three days ago with representatives of the business and finance world (The notes I will share are information I received from three friends who were present at the meeting).

THE 25 PERCENT CAP ON RESIDENTIAL RENTS WILL NOT BE EXTENDED

Our President fully supports the program we are implementing. Believe it or not. I also cannot make sense of your expectations for the post-election period. This program will continue in the same way after the election; we will implement it with patience and determination.

The regulation that limits rent increases for residential properties to 25 percent, which is set to expire on July 1, 2024, will not be needed in the coming period and will not be extended.

We are planning implementations such as different tax rates for a person's first home versus their second home, and different taxes based on the value of the home.

Taking into account the technology/strategy score that companies will receive for their investment projects, Investment Commitment Advance Loans (YTAK) will be allocated through intermediary banks for investment projects with a total investment amount of at least 1 billion Turkish Lira, with a maximum maturity of 10 years.

We will base our pricing and future expectations not on past inflation, but on expected inflation.

We will continue to accumulate reserves.

The most significant reason for our current account deficit is our gold

imports, which have reached 30 billion dollars.

Once the high-inflation months of last year are removed from the index calculation, you will see a decline in inflation in the second half of 2024.

The bankers are here; they are all good people, but if we do not set rules for them, they will not consider the country's best interests and will do as they please; what can we do, these are the realities of life.

A reduction in high customs duties on raw material and semi-finished product imports is not possible at this stage."