Rampant rent increases continue to maintain their place in Turkey’s agenda. These exorbitant rate hikes in housing rents have been putting tenants under pressure for a long time. Until last year, rent increases were calculated based on the Consumer Price Index (CPI), but in response to these excessive rent increases, the government implemented a rent increase limit of 25% valid until July 1, 2023, in order to curb the rise. The fate of the rent increase rate after July 1 is a matter of curiosity, and the good news that brings relief to tenants came from Justice Minister Yılmaz Tunç. Tunç announced that the rent increase limit, which is currently set at 25%, will be extended, stating that the work on the matter is ongoing. Minister Tunç said, “The regulation regarding the 25% increase limit on rents will be extended, we are working on it. If the regulation does not come into effect before July 1, it will be valid from July 1.”
LANDLORDS UNHAPPY
Gülcan Altınay, a member of TÜGEM (Real Estate Consultants Association), says that landlords whose money is eroded in the face of inflation will be unhappy about the extension of the rent increase limit. Real Estate Consultant Gülcan Altınay stated: “With the extension of the 25% increase limit on rents after July 1, tenants will be very pleased with this situation, but landlords will be very uncomfortable. Because with the increase in inflation, other basic necessities such as food and clothing have seen high rates of increase, and some landlords rely solely on the rent they receive as their only source of income. Therefore, there are those who state that they have difficulties in making a living with the rent they receive due to the imposed restriction.”
“LANDLORDS ARE INCLINED TO SELL THEIR PROPERTIES”
Altınay stated that landlords who rely solely on rental income are disadvantaged by this practice and are inclined to sell their properties as a way out: “In this case, some property owners are turning to selling their apartments, and once again, tenants will be the ones who suffer.”
