The real estate sector in Türkiye is currently witnessing wide public discussion following the announcement of the new legal rent increase rate for residential properties in October, which has been set at 38.36%.
According to this decision, property owners renewing lease agreements are entitled to request an increase of up to this percentage.
For example, if the current rent is 10,000 Turkish liras, the new rent can legally rise to 13,836 Turkish liras after the adjustment.
Legal and Economic Background
- The Turkish government determines the legal rent increase rate based on the Consumer Price Index (CPI / TÜFE) published by the Turkish Statistical Institute (TÜİK). This is the same index used to evaluate property values in the real estate market in Türkiye.
- By law, landlords cannot impose a rent increase higher than the announced rate, even if property prices in the area have risen beyond that.
- It is worth noting that the previous 25% fixed cap, which was applied during 2023 and 2024, was abolished in July 2024, linking future rent increases directly to inflation rates.
Impact on the Real Estate Market in Türkiye
This relatively high rate clearly reflects the inflationary pressure affecting the real estate sector in Türkiye.
While landlords face higher maintenance and service costs, tenants struggle to cope with the growing monthly expenses.
What Does This Mean for Real Estate Investors?
The increase of the legal rent cap to 38.36% is positive news for investors in the Turkish real estate market.
It means rental returns are rising in line with inflation, helping investors protect their capital and increase annual income from their properties.
At the same time, mid-sized cities such as Yalova, Bursa, and Trabzon continue to offer attractive opportunities, combining affordable purchase prices with high rental yields.
According to Omran Turk:
This development confirms that real estate investment in Türkiye remains one of the safest and most profitable options, especially in projects that combine strategic locations with professional management.
Moreover, real estate in Türkiye continues to be a more stable and less volatile investment compared to other asset classes.
Rental demand remains strong due to population growth, the rising cost of home ownership, and the increasing number of foreign residents, particularly in major cities like Istanbul, Ankara, and Antalya, as well as Yalova, which offers a balanced mix of price and return potential.
Example
Let’s look at a practical example illustrating the impact of the increase:
- Current rent: 10,000 TRY
- Legal increase rate: 38.36%
- Added amount: 3,836 TRY
- New rent after renewal: 13,836 TRY
This example shows how household budgets are affected amid continuous price hikes in the rental and real estate markets in Türkiye.
Ongoing Debate
- Property owners argue that the increase is fair, given the rising prices of real estate and construction materials, as well as higher renovation costs.
- Tenants, on the other hand, call on the government to set a new upper limit to protect middle- and low-income families, especially in cities experiencing sharp rent and housing price surges.
Advice for Tenants and Property Owners
- When renewing a lease agreement, ensure the rent increase does not exceed the official legal rate.
- Always document the agreed percentage clearly in the contract, referencing the official TÜİK index.
- In case of disputes, both parties can refer to real estate courts or mediation committees that handle property-related cases in Türkiye to ensure legal fairness.
Conclusion
These developments mark a new phase in Türkiye’s real estate market, where prices and rents are now directly linked to inflation indicators.
As the cost of living continues to rise, rent prices will likely remain a central topic in economic discussions among the government, property owners, and tenants in the coming months.
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