New Regulation on Rent Increase Rates


In Article 344 of the Turkish Code of Obligations, it is regulated that the agreements of the lessee and the lessor regarding the rental price to be applied in the renewed rental periods are valid provided that they do not exceed the change rate in the consumer price index (“CPI”) in the previous rental year according to the twelve-month averages.

In practice, it is seen that the annual increase rates in rental contracts are generally determined at the rate of CPI calculated according to the twelve-month averages, and the rent change rates of the last months are as follows;


March 2022 - 25.98%

April 2022 – 29.88%

May 2022 – 34.46%

June 2022 – 39.33%

This time, "Temporary Article 1" was added to the Turkish Code of Obligations with the 4th article of the "Law on Amending the Law on Lawyers and the Turkish Code of Obligations" numbered 7409, which was published in the Official Gazette dated 11 June 2022 and numbered 31863. An upper limit of 25% has been imposed on the rate of increase to be applied for residential rents in lease agreements renewed between 11.06.2022 and 01.07.2023.


Accordingly, in lease agreements renewed between 11.06.2022 and 01.07.2023;

If there is an agreement between the parties regarding the rent increase rate:

If the agreed rent increase rate is determined as 25% or less, at this rate,

If an increase rate higher than 25% is determined, the upper limit of 25%,

If the increase rate is determined according to the CPI, the change rate in the CPI according to the twelve-month average and 25%, whichever is lower, will increase at this rate and the new term rental price will be determined.

If there is no agreement between the parties on this matter:

An increase rate will be determined by the judge, taking into account the condition of the leased property, with an upper limit of 25%.

The 25% increase rate will not be considered as the upper limit for lease agreements that last longer than five years or are renewed after five years; If the parties resort to litigation for the determination of the rental price, the rental fee to be applied in the new rental year; The rate of change according to the twelve-month averages in the CPI will be determined by the judge in an equitable manner, taking into account the condition of the leased property and the comparable rental prices.

This regulation, which will be effective until July 1, 2023, will not affect the lease agreements to be signed after July 1, 2022, unless the period is extended by a new law.

As a result, it is seen that with the temporary article added to the Turkish Code of Obligations, it is aimed to protect the tenant from the high increase in CPI rates in the housing lease agreements renewed between 11.06.2022 and 01.07.2023, including these dates. No innovation is foreseen in the regulation for workplace rentals, and the amendment will only apply to residential rentals. In this context, considering the imperative nature of the aforementioned article, it is possible for the lessee and the lessor to make demands from each other based on the missing or extra paid amounts.

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