The 25 percent cap is being lifted: How will rental prices be determined?

Following the significant rise in rents, a temporary article was added to the Turkish Code of Obligations on June 8, 2022, imposing a 25 percent rent increase cap on residential leases.

The limitation has been extended until July 1, 2024. Under this regulation, the ceiling for residential rent increase rates had been capped at 25 percent.

Treasury and Finance Minister Mehmet Şimşek has announced that no new regulations will be introduced, meaning the law capping residential rent increases at 25 percent will expire after July 1.

According to a report in Birgün, the system for residential rent increases will revert to the previous method. In accordance with Article 344 of the Code of Obligations, increases will be calculated based on the 12-month average inflation rate.

Following July 2, rent increases for residential properties will now be based on the inflation average—specifically, the 12-month CPI average as determined by the rate announced in the monthly bulletin by TÜİK.