New Temporary Cap Introduced for Residential Lease
Rental Fee Increases
On 11 June 2022, law numbered 7409 (“Law”) which
consists of amendments to certain laws was published in the
Official Gazette. The Law which came into effect on 11 July 2022
includes a significant amendment on Turkish Code of Obligations
regarding the maximum rate that will be applicable for rental fee
increases of residential leases.
As per the newly added Temporary Article 1 of the Turkish Code
of Obligations, the rent increases that will be applicable for
those residential leases renewed between the dates of 11 June 2022
and 1 July 2023 (including) will be capped at 25%. In the event
that the twelve-month average consumer price index change of the
previous year (“Average Consumer Price Index Change”)
– which is the existing cap as per the Turkish Code of
Obligation – is below 25%, then such rate will continue to be
the cap for the rental fee increases. Contracts concluded which
exceed these
