Rent increase rules in Turkey are among the most important and frequently disputed areas of Turkish real estate law. Rising property values, changing inflation rates and the significant difference between older rents and current market prices have caused an increasing number of disagreements between landlords and tenants.

A landlord may believe that the rent should immediately be brought to the current market level, while a tenant may assume that no increase is possible unless a new agreement is signed. Neither assumption is always legally correct.

The amount of rent payable during a renewed rental period is primarily governed by Articles 344 and 345 of the Turkish Code of Obligations No. 6098. These provisions regulate annual rent increases, judicial rent determination after five years, leases denominated in foreign currency and the date from which a court-determined rent becomes effective.

The legal position depends on several factors, including the wording of the rental agreement, the commencement and renewal dates, the duration of the rental relationship, whether the property is a residence or roofed workplace, whether a valid increase clause exists and whether the parties have completed the mandatory mediation process.

Under the current general system, the ordinary annual increase for residential and roofed commercial leases cannot exceed the 12-month average change in the Consumer Price Index, commonly referred to as CPI or, in Turkish, TÜFE. The temporary 25% limit previously applicable to residential leases expired after 1 July 2024 and is no longer the general rent increase rule.

This article explains how rent increases are calculated in Turkey, which CPI figure should be used, what happens when the agreement contains no increase clause, when the landlord may request market rent and how rent determination disputes are resolved.

Legal Basis of Rent Increases in Turkey

Rent increases for residential and roofed workplace leases are principally regulated by Article 344 of the Turkish Code of Obligations.

The current wording of Article 344 provides that agreements concerning the rent applicable during a renewed rental period are valid only to the extent that the increase does not exceed the 12-month average change in the Consumer Price Index.

This limitation also applies to rental agreements concluded for periods longer than one year. Therefore, signing a three-year, five-year or ten-year rental agreement does not necessarily allow the parties to avoid the statutory increase limitation by inserting predetermined annual percentages above the CPI ceiling.

The statutory rule applies primarily to residential properties and roofed commercial premises. Apartments, villas, offices, stores, clinics, restaurants and other enclosed commercial properties may fall within this framework.

Leases relating to land, agricultural property, open parking areas or other properties that do not qualify as residential or roofed workplace leases may require a separate assessment under the general lease provisions.

What Does the 12-Month Average CPI Rate Mean?

The CPI rate used for rent increases is not necessarily the same as the annual inflation rate announced for the previous month.

The Turkish Statistical Institute publishes several different inflation figures each month, including:

• Monthly CPI change;
• CPI change since the beginning of the year;
• CPI change compared with the same month of the previous year; and
• CPI change according to 12-month averages.

For ordinary rent increases under Article 344, the relevant figure is the change according to 12-month averages.

This distinction is important. The annual inflation figure and the 12-month average figure may be significantly different. A landlord should not apply the highest inflation figure appearing in the monthly announcement. The statutory ceiling is based specifically on the 12-month average CPI change.

As of July 2026, the most recently published CPI data concerns June 2026. According to the Turkish Statistical Institute, the CPI increased by 32.11% compared with the same month of the previous year, while the change according to 12-month averages was 32.03%. For a rental renewal to which this data applies, the relevant statutory ceiling is therefore 32.03%, not the 32.11% annual inflation figure.

The applicable figure changes every month. Accordingly, a percentage published for one renewal month should not automatically be used for a rental agreement renewed in another month.

Which CPI Rate Applies to the Rental Agreement?

The renewal date of the rental agreement is decisive.

If a rental agreement commenced on 1 July, its ordinary annual renewal date will generally be 1 July. The increase should be calculated by reference to the latest 12-month average CPI figure officially available for that renewal period.

The date on which the parties signed the original agreement and the date on which the tenant actually received the property should be examined carefully. In some cases, the written signature date, delivery date and rental commencement date may be different.

The contractual renewal date should be determined from the agreement and the actual rental relationship. A landlord cannot normally choose another month merely because that month has a higher CPI figure.

Similarly, a tenant cannot avoid an increase by claiming that no new written agreement was signed. Residential and roofed workplace leases are generally renewed by operation of law, and the rent may be adjusted according to a valid contractual increase clause and the statutory limitation.

How Is the New Rent Calculated?

The ordinary calculation is straightforward.

The existing monthly rent is multiplied by the permitted increase percentage. The resulting increase is then added to the existing rent.

For example, assume that the existing monthly rent is TRY 20,000 and the applicable 12-month average CPI rate is 32.03%.

The calculation would be:

Existing rent: TRY 20,000
Increase amount: TRY 20,000 × 32.03% = TRY 6,406
New monthly rent: TRY 26,406

The parties may agree on a lower amount. The CPI rate is a maximum ceiling for the ordinary annual contractual increase; it is not a compulsory minimum.

Therefore, if the landlord and tenant agree to increase the rent by only 20%, even though the applicable CPI ceiling is 32.03%, the agreed lower rate may be applied.

However, if the agreement provides for a 50% annual increase while the applicable CPI ceiling is 32.03%, the provision is enforceable only within the statutory ceiling for the ordinary renewal period.

Is the CPI Rate Applied Automatically?

The answer depends on the rental agreement.

If the agreement contains a valid clause stating that the rent will be increased annually according to the 12-month average CPI rate, the contractual mechanism may operate on the renewal date without the parties signing an entirely new agreement.

If the agreement provides for a fixed percentage lower than the CPI ceiling, the agreed lower percentage will generally apply. For example, if the agreement provides for a 15% annual increase while the CPI ceiling is 32%, the landlord cannot automatically disregard the 15% clause and demand 32% solely because the law permits a higher maximum.

Where the agreement contains no rent increase clause and the parties cannot agree on the new rent, the landlord should not assume that any preferred percentage may be imposed unilaterally. Under Article 344, the rent may be determined by the court, subject to the CPI ceiling and an equitable assessment considering the condition of the property during the first five years.

To prevent disputes, landlords should send a written notice stating the renewal date, existing rent, applicable CPI figure and calculated new rent. Although a separate notice may not always be a condition for the operation of a valid contractual clause, written notification provides valuable evidence.

Can the Landlord Increase the Rent Above CPI?

During the ordinary annual renewal process within the first five years, the landlord cannot validly impose an increase above the statutory CPI ceiling merely because market rents have risen.

A contractual provision stating that the rent will increase by a rate exceeding the 12-month average CPI change is valid only up to the statutory maximum.

For example, if the agreement provides for an annual increase of “CPI plus 10%,” the additional 10% would not ordinarily be enforceable where it causes the total increase to exceed the CPI ceiling.

The landlord also cannot avoid the limitation by describing part of the increase as a compulsory service payment, renovation contribution or additional usage fee where the payment is effectively part of the rent.

Article 346 of the Turkish Code of Obligations prohibits imposing additional payment obligations on tenants of residential and roofed workplace properties other than rent and permissible ancillary expenses. Contractual penalties for late payment and provisions making future rent immediately due are also invalid.

Can the Parties Agree on a Rent Increase Above CPI?

An agreement made in advance for an ordinary annual increase above the CPI ceiling is not enforceable beyond the legal limit.

In practice, however, the parties may voluntarily conclude a new agreement or settlement where the tenant knowingly accepts a different rent. The legal validity and consequences of such an arrangement must be evaluated according to its date, purpose, circumstances and mandatory tenant-protection rules.

A document described as a “new rental agreement” may in reality be a continuation of the existing rental relationship. Merely replacing the paper agreement does not always restart the five-year period or remove the restrictions under Article 344.

Courts examine the substance of the relationship rather than relying solely on the title of the document. If the same tenant remains in the same property and only the rent amount is changed, the arrangement may be treated as an amendment or continuation rather than a completely independent tenancy.

Landlords and tenants should therefore avoid artificial agreements designed solely to circumvent mandatory rent increase limitations.

What Happened to the 25% Rent Increase Limit?

A temporary 25% rent increase limit was introduced for residential leases during a period of exceptional inflation.

The first temporary regulation applied to residential rental periods renewed between 11 June 2022 and 1 July 2023. The limitation was later extended for residential rental periods renewed between 2 July 2023 and 1 July 2024, inclusive.

The temporary limitation applied only to residential leases. Roofed commercial workplace leases remained subject to the ordinary Article 344 CPI framework.

The 25% limitation was not extended beyond 1 July 2024. Accordingly, for rental periods renewed after that temporary period, the general 12-month average CPI ceiling once again became applicable.

A common mistake is to assume that every rent increase taking place in 2024 was limited to 25%. The exact renewal date must be examined. A renewal occurring on 1 July 2024 remained within the express temporary period, while a later renewal was governed by the ordinary CPI rule.

As of 2026, the 25% limit is no longer the current general rule.

Rent Increase Rules During the First Five Years

During the first five years of a residential or roofed workplace lease, the ordinary annual rent increase is governed by the CPI ceiling.

Where the agreement contains a valid increase provision, the agreed formula applies only up to the statutory limit.

Where the parties did not agree on an increase mechanism, the court may determine the rent by considering the condition of the property and equity, but the amount determined for the ordinary renewal period cannot exceed the 12-month average CPI change.

The landlord cannot generally demand the full vacant-market rental value during the first five years solely because comparable properties are being offered at significantly higher prices.

This is one of the most important distinctions in Turkish rental law. The ordinary annual increase system protects the tenant against sudden market-based increases during the initial period, while the five-year rent determination mechanism later allows the court to consider comparable market rents.

Rent Determination After Five Years

Once five years have been completed, either the landlord or the tenant may file a rent determination lawsuit for the rental period following the five-year period.

At this stage, the court is not limited solely to applying the ordinary CPI ceiling. Article 344 requires the judge to consider:

• The 12-month average CPI change;
• The physical condition and characteristics of the property;
• Comparable rental values; and
• Principles of equity.

The same market-based review may be repeated at the end of each subsequent five-year period.

The purpose of the five-year mechanism is to prevent the contractual rent from becoming permanently disconnected from objective market conditions.

However, the landlord does not automatically obtain the full rent that could be demanded from a new tenant for a vacant property. Courts generally assess the property as an occupied property and apply an equitable evaluation.

The exact reduction or adjustment is not predetermined by the Code. It depends on the property, duration of occupation, comparable evidence and judicial assessment.

What Is a Rent Determination Lawsuit?

A rent determination lawsuit is an action requesting the court to establish the rent payable for a particular rental period.

The claimant may be the landlord or the tenant. Although most cases are filed by landlords seeking an increase, a tenant may also request judicial determination where the contractual or demanded rent exceeds the lawful level.

The court usually appoints an expert panel to inspect the property. The experts examine the property’s location, area, age, building quality, floor, frontage, accessibility, condition, view, commercial potential and surrounding rental market.

Comparable properties should be genuinely similar. An advertisement for a newly constructed luxury apartment cannot automatically establish the rent of an older property in a different street.

The parties may submit rental agreements, expert valuations, property advertisements, title deed information, municipal records, photographs and other evidence.

The court is not bound solely by the expert report. The judge must evaluate the legal criteria and equity before determining the rent.

When Can a Rent Determination Lawsuit Be Filed?

Article 345 states that a rent determination lawsuit may be filed at any time.

However, the filing date is extremely important because it determines when the court-determined rent will become effective.

If the lawsuit is filed at least 30 days before the beginning of the new rental period, the rent determined by the court may apply from the beginning of that new period.

The same result may be achieved where the landlord sends the tenant a written notice within the 30-day period stating that the rent will be increased and then files the lawsuit before the end of the following rental period.

If the rental agreement already contains a provision stating that the rent will be increased in the new rental period, a lawsuit filed before the end of that rental period may result in the determined rent applying from the beginning of the same period.

These timing rules are critical. A landlord who files late may still obtain a rent determination decision, but the new amount may become effective only for a later rental period.

Example of the 30-Day Rule

Assume that a rental agreement renews on 1 September 2026.

To have the judicially determined rent apply from 1 September 2026, the landlord should generally file the lawsuit no later than 30 days before the renewal date.

Alternatively, the landlord may send a written rent increase notice within that period and file the lawsuit before the end of the following rental period.

If the agreement already contains a valid increase clause, Article 345 provides an additional mechanism under which a lawsuit filed before the end of the new rental period may cause the determined amount to apply from the beginning of that period.

Nevertheless, the interaction between contractual clauses, mediation, notice dates and court filing dates should be evaluated individually. Landlords should not delay the process until the final days.

Written Rent Increase Notices

A written rent increase notice should clearly identify:

• The landlord and tenant;
• The rented property;
• The commencement and renewal dates;
• The existing monthly rent;
• The applicable CPI rate;
• The proposed new rent;
• The date from which the new rent is requested; and
• The landlord’s payment account.

Where the landlord intends to preserve the retrospective effect of a future rent determination lawsuit, the notice should also clearly state that a rent increase is requested for the upcoming rental period.

A notarial notice provides strong evidence of the content and service date. Registered electronic mail or other legally verifiable written methods may also be considered depending on the parties and circumstances.

An ordinary telephone call may be difficult to prove. Messaging application conversations may provide evidence but may create disputes about identity, completeness and legal service.

The safest method should be selected according to the value and importance of the rental relationship.

What Happens If the Tenant Pays the Old Rent?

Where a valid contractual increase clause exists, the tenant’s continued payment of the previous rent may create a rental difference debt.

The landlord may accept the partial payment while reserving the right to claim the difference. Accepting payment without objection does not necessarily mean that the landlord permanently waived the lawful increase, but repeated and unclear conduct may create evidentiary disputes.

The payment description and correspondence between the parties should therefore be preserved.

If the landlord receives the old amount, the landlord may send a written notice requesting the difference. Where payment is not made, enforcement proceedings or a rental receivable claim may be considered.

However, the landlord must calculate the amount correctly. Demanding an increase above the statutory limit may affect whether a default notice or payment demand is legally justified.

Can the Tenant Challenge an Unlawful Increase?

A tenant is not required to accept an increase that exceeds the statutory limit merely because the landlord has sent a written demand.

The tenant may continue paying the amount calculated according to the valid contractual provision and the applicable CPI ceiling. Payments should be made through a bank with an accurate description.

The tenant should also respond to the landlord’s demand in writing, explaining the legal calculation and preserving the payment records.

If the tenant has paid an amount above the lawful level, the possibility of reclaiming the excess depends on the nature of the payment, agreement between the parties, reservation of rights and the legal basis asserted.

The tenant should not simply stop paying all rent. Even where the demanded increase is unlawful, failure to pay the undisputed amount may allow the landlord to initiate enforcement or eviction proceedings.

Rent Increases in Commercial Leases

The ordinary CPI limitation under Article 344 also applies to roofed commercial workplace leases.

Offices, shops, restaurants, clinics and similar enclosed business properties may therefore be subject to the same general annual ceiling.

However, commercial agreements are frequently more complex. They may include turnover rent, common area expenses, promotional contributions, taxes, management fees, service charges and foreign-currency elements.

The legal nature of each payment should be examined separately. A genuine service expense is not necessarily part of the basic rent, but describing rent as a service fee will not automatically remove it from mandatory rental law.

The temporary 25% residential rent limit did not generally apply to roofed commercial leases. Commercial rent renewals during that period remained governed by the ordinary Article 344 framework.

Long-term commercial leases should be drafted carefully to distinguish ordinary annual increases, five-year market reviews and genuine operating expenses.

Foreign-Currency Rental Agreements

Article 344 contains a separate provision for agreements in which the rent is validly determined in foreign currency.

Under this provision, the foreign-currency rent cannot ordinarily be changed before five years have passed, subject to the hardship provision in Article 138 of the Turkish Code of Obligations.

After five years, the court may determine the rent by considering the change in the value of the foreign currency together with the factors applicable to the five-year market review.

However, foreign-currency rental agreements are also affected by Turkish currency-protection legislation. Depending on the nationality, residence and legal status of the parties, agreeing on rent in foreign currency may be restricted or permitted only under specific exceptions.

The validity of the foreign-currency clause must therefore be examined separately before applying Article 344.

Difference Between Rent Determination and Rent Adaptation

A rent determination lawsuit and a rent adaptation lawsuit are not the same.

A rent determination lawsuit is based on the special rental provisions of Articles 344 and 345. It concerns the amount payable during a renewed rental period and, after five years, permits examination of comparable rents.

A rent adaptation lawsuit is based on the general hardship provision of Article 138. It requires extraordinary circumstances that were not foreseen and could not reasonably have been expected when the agreement was concluded.

The event must fundamentally disturb the contractual balance and make performance excessively burdensome for one party contrary to good faith.

Ordinary market fluctuations or the fact that the landlord could obtain a higher rent from another tenant may not, by themselves, satisfy the strict requirements for adaptation.

A party seeking adaptation must establish the exceptional event, its effect on the contractual balance and compliance with the other statutory conditions.

Mandatory Mediation in Rent Increase Disputes

Since 1 September 2023, applying for mediation before filing a lawsuit has been a mandatory procedural requirement for disputes arising from rental relationships, except for eviction proceedings conducted through the specific non-judicial enforcement route under the Enforcement and Bankruptcy Law.

Rent determination and rent adaptation lawsuits are therefore subject to mandatory mediation before a court case is filed.

The applicant must submit the dispute to the mediation bureau and complete the process. If no agreement is reached, the final mediation report must be attached or referred to in the subsequent lawsuit.

A lawsuit filed without completing mandatory mediation may be dismissed because the procedural prerequisite has not been satisfied.

The parties may agree during mediation on:

• The new monthly rent;
• The effective date of the increase;
• Payment of past rental differences;
• Instalment terms;
• A future increase formula;
• Deposit adjustment; or
• An agreed termination or eviction date.

Because Article 345 contains strict rules concerning the effective date of a judicially determined rent, the mediation application should be made well before the new rental period. Parties should not assume that a late application will automatically preserve every substantive deadline.

Which Court Handles Rent Determination Cases?

Civil Courts of Peace have jurisdiction over disputes arising from rental relationships, regardless of the monetary value of the claim.

This includes rent determination, rent adaptation, rent receivables, deposit disputes and most eviction lawsuits. The non-judicial enforcement provisions concerning eviction remain excluded from this general jurisdiction rule.

The territorially competent court may generally be the court of the defendant’s residence or the place where the rental agreement is performed.

Since rent is normally performed at the place associated with the rental relationship or payment obligation, more than one court may potentially have territorial jurisdiction depending on the circumstances.

Jurisdiction clauses require separate examination, particularly where one or both parties are not merchants or public legal entities.

Evidence in Rent Increase Disputes

The following evidence may be important in a rent increase dispute:

• The original rental agreement;
• Renewal protocols;
• Bank payment records;
• Written increase notices;
• Notarial notices;
• Mediation documents;
• Comparable rental agreements;
• Property advertisements;
• Expert reports;
• Photographs and property plans;
• Title deed and municipal records; and
• Communications between the parties.

Bank records are particularly important because they show the historical rent, payment dates and whether increased amounts were accepted.

Property advertisements may support a market analysis, but advertisements alone do not conclusively prove the rent actually paid for comparable properties. Asking prices may differ from completed rental transactions.

The strongest comparable evidence generally concerns properties with similar location, size, age, physical condition and usage characteristics.

Common Mistakes Made by Landlords

One common mistake is applying the annual inflation rate instead of the 12-month average CPI rate.

Another is assuming that the end of the temporary 25% limit allows any percentage increase. The end of the temporary cap did not abolish Article 344. The 12-month average CPI ceiling continues to govern ordinary annual increases.

Landlords also frequently attempt to apply current market rent before the five-year period has been completed.

Another serious mistake is missing the notice and filing timetable under Article 345. Even a legally justified market-rent claim may take effect later than expected if the required timing is not observed.

Landlords should also avoid threatening eviction solely because a tenant refuses to accept an unlawful increase. Rent increase and eviction are separate legal matters.

Common Mistakes Made by Tenants

Tenants sometimes assume that the rent can never increase unless they sign a new contract. Where a valid annual increase clause exists, the rent may increase automatically on the renewal date within the statutory limit.

Another mistake is continuing to pay the previous rent without responding to formal notices. This may cause rent differences, interest and enforcement expenses to accumulate.

Tenants also frequently confuse the 12-month average CPI rate with monthly or annual inflation.

A tenant should not pay an increased amount in cash without obtaining a receipt. Nor should the tenant stop paying the entire rent merely because the requested increase is disputed.

The undisputed portion should generally continue to be paid through a traceable method while the disputed amount is addressed through negotiation, mediation or litigation.

Practical Recommendations for Landlords

Landlords should review the rental agreement at least several months before the renewal date.

The commencement date, contractual increase clause, duration of the relationship and completion of the five-year period should be confirmed.

Where an ordinary annual increase applies, the landlord should use the correct 12-month average CPI figure and send a clear written calculation.

Where five years have been completed and the contractual rent is substantially below market value, the landlord should collect reliable comparable evidence and begin mandatory mediation early.

If no settlement is reached, the lawsuit should be filed according to the timetable in Article 345.

Landlords should avoid demanding unsupported amounts, relying solely on online advertisements or combining a rent dispute with unlawful pressure to vacate.

Practical Recommendations for Tenants

Tenants should keep the original rental agreement and all bank payment records.

When receiving an increase demand, the tenant should verify:

• The actual renewal date;
• The applicable 12-month average CPI rate;
• The contractual increase clause;
• Whether five years have been completed;
• Whether the demand concerns an ordinary annual increase or market-rent determination; and
• Whether the landlord has followed the mandatory mediation procedure.

The tenant should respond in writing to any unlawful demand and continue paying the undisputed amount on time.

Where a rent determination lawsuit is filed, the tenant should examine the landlord’s comparable properties and submit evidence concerning the actual condition, defects and disadvantages of the rented property.

Frequently Asked Questions About Rent Increases in Turkey

What is the legal rent increase rate in Turkey?

The ordinary annual ceiling for residential and roofed workplace leases is the 12-month average change in the Consumer Price Index applicable to the renewal period.

Is the 25% rent increase cap still valid?

No. The temporary residential rent limitation expired after 1 July 2024. The general CPI-based rule is currently applicable.

Can the landlord apply annual inflation instead of the 12-month CPI average?

No. The statutory ceiling is based on the CPI change according to 12-month averages, not simply the annual inflation figure.

Can the landlord demand market rent before five years?

The landlord cannot ordinarily replace the CPI-based annual increase with full market rent during the initial five-year period solely because comparable rents are higher.

What happens after five years?

Either party may request judicial rent determination. The court considers CPI, the condition of the property, comparable rents and equity.

Is a written notice required?

A written notice is strongly recommended and may be legally important for determining when a future court-determined rent becomes effective. The exact requirement depends on the agreement and filing date.

Can the tenant refuse every increase?

No. If the agreement contains a valid increase clause, the tenant must generally pay the increased rent calculated within the statutory ceiling.

Can the parties agree on a lower increase?

Yes. The CPI rate is a maximum ordinary annual ceiling. The parties may agree on a lower percentage.

Is mediation compulsory before a rent determination lawsuit?

Yes. Rent determination and most other rental disputes are subject to mandatory mediation before litigation.

Which court hears the case?

The competent court by subject matter is generally the Civil Court of Peace.

Conclusion

Rent increase rules in Turkey establish a balance between the landlord’s right to preserve the economic value of rental income and the tenant’s right to protection against sudden and arbitrary increases.

During ordinary annual renewals, the applicable increase cannot exceed the 12-month average CPI change. The parties may agree on a lower rate, while a higher contractual percentage is enforceable only within the statutory ceiling.

The temporary 25% residential rent limit expired in July 2024. Its expiry did not create an unrestricted market-rent system. The general CPI limitation under Article 344 remains applicable.

After five years, the landlord or tenant may request judicial rent determination based on CPI, the condition of the property, comparable rents and equity. However, the timing of the notice, mandatory mediation application and lawsuit directly affects the rental period from which the new amount becomes effective.

Rent increase disputes should therefore be managed through accurate calculations, written evidence and careful compliance with procedural deadlines. A mistake concerning the renewal date, CPI figure, five-year calculation or Article 345 notice period may result in a substantial financial loss.

Both landlords and tenants should obtain individual legal advice before signing a rent increase protocol, making a market-rent demand or commencing mediation and litigation.

Legal Disclaimer: This article provides general information regarding rent increase rules in Turkey and does not constitute legal advice. The applicable increase and legal procedure must be assessed according to the rental agreement, renewal date, property type, duration of occupation, payment history and current legislation.