Rent Increase Rates and Limits (Turkey)

In Turkey, rent increases are strictly regulated under the Turkish Code of Obligations (TCO) No. 6098, which became effective on 1 July 2012. Under Article 344, rent increases are capped by statutory inflation-based limits to prevent arbitrary hikes. Agreements exceeding these limits are considered automatically null and void (kesin hükümsüz) for the excess amount under Article 344/1. The tenant is not legally required to initiate litigation to invalidate the portion of an increase that exceeds the statutory cap.

Important Note: The "25% cap" valid before July 1, 2024, was a temporary legal regulation, and after this date, it reverted to the previous state (the CPI rule). Information verified: May 2026.

1. Statutory Cap Rate: "12-Month CPI Average"

During contract renewal periods (e.g., entering the new year of an annual lease), the landlord can increase the rent so as not to exceed the "twelve-month averages of the Consumer Price Index (CPI/TÜFE)" announced by the Turkish Statistical Institute (TurkStat) for the previous rent year.

• The landlord and the tenant can agree on an increase lower than the CPI (e.g., 15%) in the contract; in that case, that lower rate in the contract is valid.
• However, even if a clause like "Rent is increased by 80% every year" is written in the contract, and the CPI announced that month is 40%; only an increase of at most the CPI (the 40% Cap) can be legally enforced. Any amount exceeding this cap is automatically null and void.
• Rent increases can be made only once a year. Requests like "interim raises" within the contract period are illegal and invalid.

2. Market Adjustment and "Rent Determination Lawsuit" (The 5-Year Rule)

To protect landlords against the rent remaining very low due to inflation in long-term leases, the Law has introduced the institution of the "Rent Determination Lawsuit" (Kira Tespit Davası).

If 5 years have passed from the very first moment the contract was signed by the parties (including extensions or renewals); the landlord or the tenant can file a lawsuit at the Civil Peace Court (Sulh Hukuk Mahkemesi) for the redetermination of the rent for the sixth year.

Mandatory Prerequisite: Since September 1, 2023, under Law No. 7445 and Article 18/B of Law No. 6325, parties must apply for mandatory mediation before filing a rent determination lawsuit. Lawsuits filed without a "Non-Agreement Report" from a mediator will be dismissed on procedural grounds.

When the lawsuit is filed, the Judge determines the rent based on the 12-month CPI average, market precedents (emsal kira bedelleri), and the principle of equity (hakkaniyet):

• The current general market comparable rental values of the property.
• Inflation rates.
• The rule of Rights and Equity: Courts typically apply an "old tenant discount" (hakkaniyet indirimi) of 10% to 20% from the current free-market value.

Exception for New Tenants

The CPI limit does not apply to landlords renting their empty house to a fresh new tenant for the first time. At the first signing, under completely free market conditions, the landlord can advertise the house at their desired figure and write it into the contract. The CPI raise wall is only to protect the "Current Constant Tenant" who has already completed the previous year inside the house from raises and inflation.

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