What This Blog Covers
What is TÜFE (Consumer Price Index)?
What is a Rent Increase Rate?
How is Rent Increase Calculated?
What is the Maximum Rent Increase Allowed?
Has the 25 Percent Rent Cap Been Lifted?
Legal Support from Our Real Estate Lawyers
What is TÜFE?
TÜFE, or the Consumer Price Index, is a crucial economic indicator in Türkiye. It reflects the average price change over time for goods and services purchased by consumers. TÜFE is published monthly by the Turkish Statistical Institute (TÜİK) and is often used as a reference point in rental agreements to determine annual rent increases.
Since it reflects inflation trends, TÜFE serves as a fair benchmark for both landlords and tenants when adjusting rental values, helping maintain a balanced relationship and reduce disputes.
What is a Rent Increase Rate?
The rent increase rate refers to the legally or contractually permitted percentage by which a landlord may raise the rent for a leased property. In Türkiye, rent increases are typically made annually, though the frequency and method can be adjusted based on the terms of the lease and applicable laws.
Turkish law mandates that rent increases align with economic indicators like TÜFE. If parties have not otherwise agreed, the legal limit set by the Turkish Code of Obligations applies.
How is Rent Increase Calculated?
From 1 July 2022 to 1 July 2024, a temporary regulation capped residential rent increases at 25 percent for renewed contracts. This was implemented to protect tenants during a time of economic difficulty and inflation.
As of 1 July 2024, this cap has expired. Rent increases must now follow the 12-month average of TÜFE, meaning landlords can adjust rent annually in line with inflation rates announced monthly by TÜİK.
While this restores flexibility for landlords, it also calls for careful contract drafting to ensure compliance and fairness.
What is the Maximum Rent Increase Allowed?
Under Turkish law, rent increases must now align with the average 12-month TÜFE rate unless the parties agree otherwise within the legal boundaries. The 25 percent cap is no longer in force after July 2024, and there is currently no plan to reinstate it.
However, in commercial lease agreements, the parties may include foreign currency adjustments or higher interest-linked rates if allowed by law. This ensures that the landlord’s investment is protected, especially in times of high inflation or devaluation of the Turkish Lira.
Has the 25 Percent Rent Cap Been Lifted?
Yes. The temporary legal limit on residential rent increases has officially ended as of 1 July 2024. According to statements from government officials, including the Minister of Finance, there is no plan to extend this restriction.
Going forward, all residential rent increases must adhere to the 12-month average TÜFE rate. Commercial properties were never subject to this limit and can continue to follow their contractual arrangements.
Why Legal Advice Matters
In high-inflation environments like Türkiye, disputes between landlords and tenants often arise during rent renewal periods. It is essential for both parties to agree on a fair rent increase in writing, ideally through a legally valid protocol drafted or reviewed by an attorney.
Bayraktar Attorneys advises clients to avoid verbal or informal agreements. Without a clear contract, even the most well-intentioned agreement can lead to costly legal battles.
Why Rent Law in Türkiye Requires Special Attention
Tenants often assume their rights are automatically protected by law, but this is not always the case. Property owners, on the other hand, may face losses if they fail to include protective clauses regarding inflation and interest rates.
High inflation over the last decade has pushed some tenants to delay payments or ignore their obligations, assuming the value of money will decrease. However, with current interest rates reaching record highs, failing to pay rent on time may now result in significant financial consequences for tenants.
A well-drafted lease agreement that includes provisions for foreign currency payments or maximum legally allowed interest rates is one of the best ways to protect landlords in today’s volatile environment.
Our Legal Services
At Bayraktar Attorneys, we provide expert legal services in all aspects of rent law in Türkiye, including:
Drafting or reviewing lease agreements
Negotiating rent increase protocols
Filing or defending rent determination lawsuits
Representing parties in eviction or rent collection proceedings
Advising foreign investors with rental income properties
We work closely with both landlords and tenants to protect their rights under the Turkish Code of Obligations and ensure rental relationships remain lawful and sustainable.
Contact Bayraktar Attorneys for Rent Law Services
Whether you are a tenant, landlord, or investor, we can help ensure your rental relationship is legally secure. Our English-speaking legal team has extensive experience in rent law, lease disputes, and enforcement proceedings in Türkiye.
Let us help you avoid conflict and protect your investment with confidence.
