Rent Increase Rates and Limits (Turkey)

In Turkey, rent increases are not left to the arbitrariness of the landlord. Under Article 344 of the Turkish Code of Obligations (TCO), rent increases are strictly capped by statutory or inflation-based limits. Agreements exceeding these limits are considered "invalid (null and void)."

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: March 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.

• 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. If the tenant refuses to pay the excess increase, they cannot be thrown out of their house, and no eviction lawsuit can be filed against them. (That is, this rule is a mandatory rule protecting the tenant).
• Rent increases can be made only once a year. Requests like "interim raises" or "inflation exploded, let's make an increase in the 6th month" within the contract period are completely 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 Court of Peace (Sulh Hukuk Mahkemesi) for the redetermination of the rent for the sixth year.

When the lawsuit is filed, the Judge does not directly look only at the CPI; they also calculate the equity of the rent:

• The current general market comparable rental values of the property.
• Inflation rates.
• The rule of Rights and Equity (By benefiting from the tenant discount "OLD TENANT DISCOUNT"; often, according to the judge, a discount of 10% to 20% is made from the new free-market current value because they are old), a new rental figure is legally assigned according to equity.

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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