Rent increases in residential leases are a significant area of legal regulation that directly affects both tenants and landlords. Pursuant to Article 344 of the Turkish Code of Obligations, residential rent increases are capped by the CPI (Consumer Price Index) based on the twelve-month moving average. However, due to the extraordinary rise in rental prices in recent years, a temporary legal regulation was introduced, which imposed a 25% cap on residential rent increases effective from July 1, 2022.
This limitation:
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Applied between July 1, 2022 – July 1, 2024.
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Only applies to residential leases; it does not apply to commercial leases.
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Is valid during lease renewal periods.
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Parties cannot agree on an increase exceeding this cap.
NEW REGULATION: As of July 2024, the 25% increase cap has not been extended. Therefore, starting from July 2, 2024, rent increases are once again based on the CPI (twelve-month moving average).
According to the Turkish Code of Obligations, if the lease term has not yet reached 5 years, commercial lease increases are also limited by the CPI twelve-month moving average. This rule is binding for both the tenant and the landlord, and the parties cannot agree on an increase above this rate.
For example, according to TÜİK (Turkish Statistical Institute) data, the CPI twelve-month moving average for July 2025 was announced as 41.13%, meaning that the maximum permissible rent increase for residential and commercial leases in August 2025 is also 41.13%.
However, if the lease term exceeds 5 years, the landlord is no longer limited to the CPI rate; they may file a rent determination lawsuit, taking into account comparable market rates, property location, condition of the premises, and market conditions.
In summary:
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The increase rate is capped at the CPI twelve-month moving average.
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For contracts older than 5 years, rent can be adjusted based on market value.
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If the parties have agreed on an increase in writing, that rate applies; however, in cases of excessive and unfair increases, legal action can be taken.
At Sayın Hukuk, we closely monitor current regulations regarding rent increases and provide professional assistance to our clients in eviction and rent determination lawsuits, notice procedures, and lease renewals.