Promises to contain rent growth were kept only partially

Promises to contain rent growth were kept only partially

Some time ago, the authorities concerned about a sharp surge of rental rates officially declared that the rent may not be increased by more than 25% upon extending long-term lease contracts in the period of June 11, 2022 through July 1, 2023.

However, the inflation rate in Turkey reached +78.62% per annum (based on the consumer price index) and rose by +4.95% over the past month alone.

Some media published (in many cases, reprinted) the information that a greater rent increase would be allowed after all: up to +44.54%. People grew worried and asked for explanations.

It turned out that it would indeed be possible to increase rental payments by almost 45% but only for “certain types of rent”, including workplace rentals, among others, but not housing.

Tenants of office premises were understandably unhappy: many complain that their current income does not even cover the monthly rent. Tenants of apartments, though, will be able to relax for a while: “the 25% rule” will stay in effect for the time being, as the authorities assured. If landlords violate it, they can be sued.

The approximate rental rates are therefore as follows:

  • Tenants who used to pay 2,000 Turkish Liras (TL) for rental homes will now pay no more than TL 2,500 (+25%).
  • TL 3,000, no more than TL 3,750.
  • TL 3,500, no more than TL 4,375.
  • TL 4,000, no more than TL 5,000, etc.

However, businesses that rent premises for a shop, for instance, can encounter the following change: if the previous rent was TL 1,000, it may increase by 44.5%, up to TL 1,445.40.

It has recently been reported that Turkey’s rent growth was the highest in Europe. Many Turks are now even using their summer houses as round-the-year residences to lease their city homes and make a good profit in just a few months.

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