You’ve rented out an apartment in Ankara or moved out of one. A year has passed since the lease began, and a notice titled “New Rent Period” lands in your mailbox. Both parties are asking the same question: Is the 25% cap still in effect, or are we now talking about the CPI?
The answer begins with a proper understanding of the transitional provisions of Article 344 of the Turkish Code of Obligations and the changes set to take effect after 2024. The roadmap for both landlords and tenants has been redrawn as of 2026.
Has the 25% cap been lifted? What has actually changed?
Short answer: Yes, the 25% cap has been lifted. However, this does not mean that “landlords can raise rents as much as they want.” The key point is that the rule that was in effect before the temporary regulation has been reinstated.
During the three-year period from 2022 to 2024, residential rent increases across Turkey were capped at 25% annually. The legislature aimed to protect tenants in the face of rapid inflation. As of July 1, 2024, this cap no longer applies to renewed leases; it has been replaced by the general provisions of the Turkish Code of Obligations.
) Residential lease agreements renewed after July 1, 2024: Article 344 of the Turkish Civil Code — 12-month average CPI as the upper limit
New legal framework: How is Article 344 of the Turkish Civil Code applied?
Article 344 of the Turkish Code of Obligations stipulates that the rate of increase in rent for residential and commercial properties with a roof may not exceed “the rate of change in the consumer price index based on the 12-month average for the preceding rental year.” In other words, it is the 12-month average percentage change in the reference CPI.
This figure is released monthly by the Turkish Statistical Institute (TÜİK) and is based on the current data for the month in which the contract is renewed. It is important not to confuse this with monthly inflation; the 12-month average is an indicator that smooths out sudden fluctuations.
The rate of increase may have been agreed upon by the parties in the contract. According to Article 344 of the Turkish Code of Obligations, the agreed-upon rate may not exceed the 12-month average of the Consumer Price Index (CPI). Any amount exceeding this limit cannot be legally claimed; the portion that does not exceed the limit remains valid.
A Roadmap for Homeowners
If you don’t want to rent out your property for less than its market value, it’s advantageous to start planning the process at least two months before the lease renewal date. A last-minute notice can leave you vulnerable both legally and in terms of communication.
The steps to be taken are as follows:
- Review your contract: Is the rate of increase specified, and what is the basis for calculation?
- Verify the current 12-month average CPI from TÜİK: The data released closest to the update month is used.
- Prepare a written notice: The rent for the new term, the legal basis, and the effective date must be clearly stated.
- Send the notice by certified mail or through a notary: The burden of proof lies with the landlord.
- Keep the lines of communication open with your tenant: Negotiation is legally permissible, and consistent payments are often more valuable than the maximum rent increase.
If you’re wondering what the true market value of the property is, a comparison of prices per square meter in Ankara’s up-and-coming neighborhoods can serve as a reference. However, even if the market value is high, the legal limit still applies to the tenant under the current lease.
A Roadmap for Tenants
If you receive a pay raise request that exceeds the legal limit, understanding the legal aspects of the process—without panicking or getting into an argument— is a much more effective approach.
You are not required to automatically accept the rate proposed by the landlord. The upper limit set forth in Article 344 of the Turkish Code of Obligations is mandatory and independent of the parties’ intentions. However , completely stopping rent payments by stating, “I won’t pay the increase,” is also not the right move; it could lead to eviction.
- Verify the legal upper limit using TÜİK data.
- Please pay the new rent amount, within the legal limit , in full and on time starting from the month of renewal .
- Notify the landlord in writing of the amount you paid and the reason for it.
- If the dispute continues, seek mediation or file a claim with the conciliation court.
If you’re looking to invest in a property and are considering long-term rental returns, our article on the criteria to consider when choosing an investment apartment in Çankaya can help you assess the impact of rent increase limits on your portfolio’s yield.
In the event of a dispute: mediation and the conciliation court
Under the regulation in effect since September 2023, mediation is a mandatory step in residential rental disputes before filing a lawsuit. If this step is skipped, the court dismisses the case on procedural grounds.
If an agreement is reached through mediation, the minutes of the proceedings have the force of a court judgment. If no agreement is reached, the case is referred to the conciliation court. Typical types of cases:
| Type of Case | Who Opens It? | Purpose |
|---|---|---|
| Rent determination lawsuit | Landlord or tenant | Determination of the new-term rent by the court |
| Rent adjustment lawsuit | Generally, the homeowner | Ensuring stability under extraordinary circumstances |
| Eviction case | Host | It is based on a limited number of legal grounds |
When a five-year lease agreement expires, the CPI cap is lifted, and the judge may determine the rent based on “equity and fairness.” This means a new equation for long-term leases.
Summary: The new balance awaiting the parties
The 25% cap is a thing of the past, but legal protections remain in place. The key factor in the new formula is the 12-month average CPI. For landlords, this means the upper limit for rent increases is set by law; room for negotiation lies below that threshold. For tenants, this means their rights are still intact, but staying current on payments and maintaining open communication are essential.
If you wish to reassess your real estate portfolio in light of the conditions expected in 2026, portfolio diversification strategies provide an opportunity to incorporate other investment instruments alongside rental income.
- Legal cap: The 12-month average change in the CPI for the month in which the contract is renewed.
- Before the renewal: Having both parties prepare a written notice makes the process easier.
- In the event of a dispute: Mediation first; if no agreement is reached, the civil court.
- Five years later: The judge may make a determination based on “justice and fairness.”
Frequently Asked Questions
Has the 25% limit been completely removed?
Yes, the 25% cap on residential rents expired as of July 1, 2024. For residential leases renewed after this date, the 12-month average of the Consumer Price Index (CPI) applies as the cap, in accordance with Article 344 of the Turkish Civil Code.
What is the current situation regarding commercial leases?
The 25% cap already applied only to residential rents. For commercial properties with a roof, the 12-month average CPI cap applies in accordance with Article 344 of the Turkish Code of Obligations. For commercial properties without a roof, the parties’ free will prevails.
If the landlord agreed to a lower rate in the contract, which one applies?
The rate agreed upon in the contract is compared with the 12-month average of the CPI; the lower of the two applies. The contract is binding on the parties; however, any provision exceeding the statutory cap is void with respect to the excess amount.
What happens if the tenant refuses the rent increase?
Failing to pay the rent increase within the legal limit carries the risk of eviction. If the landlord’s request exceeds the legal limit, the tenant may continue to pay the amount within the legal limit and submit a written objection. If no agreement is reached, a rent determination lawsuit may be filed.
I’ve been a tenant for five years—does the limit apply to me as well?
In a rent determination lawsuit filed after the five-year lease term has expired, the judge may set the rent amount based on the “equity and fairness” principle, regardless of the CPI cap . This is a critical milestone for tenants who have lived in the same home for a long time.
Is there a cap on the rent specified in the new lease?
No. The legal cap applies to increases in renewed leases. The rent amount in the initial lease with a new tenant is determined by the parties' free will; the market sets the rate.
