B2B Commercial Rent Increases and Turnover Rent (Turkey)
The CPI ceiling limitation applied in Shopping Malls and commercial areas in Turkey, Turnover Rent, and the Prohibition of Foreign Currency.
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
The determination of rental prices and their annual increases for Shopping Malls (AVMs), office plazas, and industrial warehouses in the Turkish market are governed by the Turkish Code of Obligations No. 6098 (effective 1 July 2012, with full applicability to commercial leases as of 1 July 2020) and are subject to much different and stricter rules than the European market (or America). The biggest distinctions are the "Prohibition of Foreign Currency" and the "Mandatory CPI Ceiling."
1. Statutory Ceiling: "12-Month CPI Average" (For B2B)
Under Article 344 of the Turkish Code of Obligations No. 6098, the rent increase rate for both residential and roofed workplace (commercial) lease agreements, for the first five years, cannot exceed the twelve-month average of the Consumer Price Index (CPI/TÜFE) announced by TurkStat (TÜİK). This rule is mandatory, and any contractual provision for a higher increase is invalid for the exceeding part. This ceiling limit, which was previously not applied to corporate merchants, became fully applicable to commercial tenants as of July 1, 2020.
2. Prohibition of Leases with Foreign Currency (Protection of Turkish Currency)
One of the biggest operational differences in the Turkish market is that it is largely prohibited to index domestic contracts to foreign currency. (Presidential Decree No. 85 - Processes after September 2018).
- Between two firms resident in Turkey (companies established according to TR laws); the price of AVM shops, offices, or rental factories cannot be determined in Foreign Currency (Dollar / Euro, etc.) or Indexed to Foreign Currency (even if in TRY, by adding exchange differences).
- Exceptions: If the tenant company itself is more than 50% foreign-funded, or a company established in Free Zones, "Foreign Currency Commercial Lease" can be made. In all other ordinary B2B leases, only the local currency "Turkish Lira (TRY)" is mandatory.
3. Shopping Mall Culture and the "Turnover Rent" Solution
The Turkish Code of Obligations (TCO) No. 6098 does not specifically regulate turnover-based rents. While widely used in practice, there are differing interpretations regarding the application of the mandatory CPI cap (Article 344 TCO) to turnover-based rent components. The prevailing market view and some legal commentators suggest that the CPI cap primarily applies to any fixed minimum rent component, and its applicability to the variable turnover-based portion is not definitively settled by law or Supreme Court precedent.
4. "5-Year Rent Adjustment (Determination) Lawsuits" in B2B Workplaces
The same protection in residences gets interrupted when the office B2B tenant completes 5 years. If your company tenant has completed 5 full years with extensions in your office, the property owner, against the "Low remaining price" of the contract, now breaks the chains of the legal CPI raise and files a rent determination lawsuit at the Civil Courts of Peace (Sulh Hukuk Mahkemesi).
- Current Market Determination: The Judge at the Civil Court of Peace, considering the new office rents in the region (M2 Square meter rental fee current market research of peer plazas), the inflation situation, and the Corporate trade volume, will determine a brand new free market Court Rent Figure for the B2B shop under Article 344 of the Turkish Code of Obligations.
Proceed to the next document: Commercial Lease Agreement Conditions.
Frequently Asked Questions
▶What are the key landlord-tenant laws in Turkey?
Tenancy relations in Turkey are regulated by the Turkish Code of Obligations (TCO). The law is notoriously protective of tenants, treating them as the economically weaker party. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Turkey?
The eviction process in Turkey requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Turkey?
Turkey has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the security deposit rules and return deadlines in Turkey?
Turkey has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in Turkey?
Lease agreements in Turkey must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Turkey?
Landlords in Turkey are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Turkey?
Turkey has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Turkey?
Landlords in Turkey must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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