How much will rents increase in 2025?

Minister Şimşek stated that following the removal of the 25 percent cap on rent increases, there have been significant hikes, especially in renewed rental contracts. In a live broadcast, he expressed that the inflation difference from recent years has been reflected in rental prices and that rent increases have approached 120 percent.

So, what is the difference between old and new rents?

Speaking to Milliyet, real estate expert Mustafa Hakan Özelmacıklı noted in his assessment that rental prices have increased nearly twofold compared to the prices of apartments for sale over the last year. These increases have become more pronounced in major cities such as Istanbul, Ankara, and Izmir.

According to Özelmacıklı, the demand for rental housing has increased significantly due to urban transformation, marriages, the housing needs of university students, and the impact of the earthquake.

Annual rent increases in Istanbul have reached 46 percent. Currently, the price per square meter for rental housing in Istanbul is 240 TL.

While the rent increase rate in Ankara is calculated at 56 percent, the price per square meter for rental housing is 180 TL.

In Izmir, the increase was 65 percent, and the price per square meter has risen to the 210 TL level.

THE DIFFERENCE BETWEEN OLD AND NEW RENTS

According to expert assessments, large differences have emerged between old rental contracts and renewed agreements due to the 25 percent rent cap. In renewed rental contracts, landlords can demand 4-5 times more rent than they did from old tenants. With the impact of inflation, many renewed rental contracts have begun to see increases above the inflation rate.

Özelmacıklı stated that while new tenants find homes at rates closer to market prices, serious increases are seen in renewed contracts for existing tenants. It has become difficult for tenants to find homes, and research has revealed that 80 percent of current tenants are worried that they will not be able to find a new home that fits their budget.

WHAT IS EXPECTED AFTER THE REMOVAL OF THE 25 PERCENT RENT CAP?

According to market data, there has been a 47 percent increase in rental housing listings across Turkey in the last year. However, figures announced by the Ministry of Treasury and Finance show that this increase has reached up to 120 percent in renewed rental contracts. Experts state that listing prices reflect only a portion of the market in reality, and that the main increase is felt in renewed contracts.

CAN LANDLORDS INCREASE RENT ABOVE THE LEGAL LIMIT?

Even if landlords demand rent increases above the inflation average, it is still possible for tenants to agree on the legal limit. The increase clause written in rental contracts is legally valid when it is in favor of the tenant. Landlords cannot demand an increase above the 12-month average of the CPI (Consumer Price Index). The parties may agree on a lower increase rate, but this rate is the upper limit determined by the CPI. Additionally, rent determination lawsuits can be filed after the legal periods have expired.

AVERAGE RENTAL PRICES ACROSS TURKEY

According to the latest data, the price per square meter for rental housing across Turkey was at the 185 TL level in August. This means that the average rent for a 100-square-meter apartment is 18,500 TL. However, these rates are even higher in major cities.

With the removal of the 25 percent cap, it is estimated that rent increases will continue, but these increases will remain above the market average, especially in major cities.

News Source: 12punto