Rents’ Increase in Turkey | October 2020

Following up the news on the rent increase in Turkey is an ongoing trend by all real estate owners as well as tenants.

We would like to demonstrate briefly in the following lines, the rates and ratios of the permitted rent increase during the current month, and the adopted mechanism hereto.

Mechanism for controlling rent increase in Turkey

Turkish government agencies have initiated an approved mechanism in which real estate owners in Turkey are entitled to impose an annual increase in rental prices on tenants in Turkey.

The Turkish Statistics Authority (TÜİK) has limited the legally permissible percentage of rent increase in October 2020, at a maximum rate of 11.47%percent.

TÜİK has also clarified that the owner of the property, whose rent is 1,000 Turkish liras, is now eligible to raise the rent to a maximum amount of 1,114 Turkish liras.

It is worth noting that this rent increase applies as a maximum to all lease contracts in Turkey, which are issued in October 2020, or those that are due to be renewed during this month.

The Turkish Statistics Authority confirmed that any excess amount above the aforementioned percentage exposes the property owner to legal accountability, unless otherwise agreed with the tenant.

Rent Increase is due to growth in the Turkish Real Estate Sector

The rent’s increased rate is the inevitable result of the continuous growth in the real estate sector in Turkey.

Subsequently, this increase can be considered as an advantage to be seized by people who are considering to invest in the real estate sector in Turkey, in order to balance annual inflation rates.

Whereas the Turkish Statistics Authority issues specific monthly rates for the increase in real estate rent in Turkey, as per its statistical and social studies.

This increase is valid for a full year, until the expiry of the contracts that were renewed during this month.

Edited by: Properties^©

Source: AMLAK 365