Landlords and expatriate renters in Turkey need to be aware of the upcoming rental increases scheduled for July 2025.
In Turkey, foreign renters can breathe a sigh of relief as the latest laws regarding rent increases offer protection against excessive hikes. As of July 2025, rent increases are capped at 43.23% based on the 12-month average Consumer Price Index (CPI), known as TUFE in Turkey. This legal maximum increase applies to both residential and commercial properties.
Landlords are only allowed to increase rent once a year, at the time of lease renewal. They cannot impose a rent hike arbitrarily during the lease term. The specific CPI figure used depends on the lease renewal date. For example, if renewed on July 1, the June CPI is applied.
Landlords are permitted to apply a lower increase than 43.23%, but cannot demand a higher percentage without court approval. In some cases, a temporary legal cap of 25% on rent increases has been implemented to protect tenants, including foreigners, from excessive hikes.
For contracts signed after July 2022, this 25% cap may still apply, and legal challenge and tenant defense are possible if landlords attempt to exceed lawful limits. Foreign tenants have legal protections under Turkish law to contest unfair rent increases, including cases where landlords try to impose increases beyond CPI or tie rent to foreign currency fluctuations.
Landlords must now provide a breakdown of the rent calculation upon request by tenants, improving transparency under the new rules. If a lease starts after the first, and the new CPI has already been announced, then the current month's CPI is used. If a lease starts on the 1st of the month, the previous month's CPI applies.
However, if a tenant has been renting for five or more years and the rent has fallen far below market standards, landlords can take legal action. In such cases, it is advisable for tenants to seek legal advice.
It's important to note that during the period when the government had placed a 25% rent cap (now lifted), many landlord-tenant relationships became strained, and a flood of lawsuits were filed, both for rent adjustment and for eviction. If your rental is already part of a pending lawsuit, that does not cancel your obligation to pay the legally calculated rent increase. Rent hikes must still be applied every year, even if the court case is ongoing.
In the event of a rent increase dispute, it's best to try to negotiate before going to court, as these cases can take up to three years. The process involves mandatory mediation, followed by a rent determination lawsuit if no agreement is reached. Judges compare average rent prices in the area, and the landlord does not automatically get the amount they ask for. The court usually offers a fair increase, including a discount for long-term tenants (called "hakkaniyet indirimi" in Turkish).
Legal experts warn that these cases can take up to three years, so it's best to try to negotiate before going to court. In rent determination lawsuits, legal experts play a crucial role in representing tenants and ensuring a fair outcome.
In summary, foreigners renting in Turkey in July 2025 should expect rent increases capped legally at 43.23% according to the CPI rule, can only be raised annually at lease renewal, and may also benefit from a 25% temporary cap depending on their lease agreement. Legal support is available to challenge unlawful rent demands, ensuring protection under the current rental framework.
- Despite the legal cap on rent increases, landlords in Turkey cannot arbitrarily increase rent during lease terms, even in the bustling city of Istanbul.
- Tenants renting in Turkey, including foreigners, are protected by law and can contest unfair rent increases, such as those based on foreign currency fluctuations or exceeding the Consumer Price Index (CPI).
- The Turkish government implemented a temporary legal cap of 25% on rent increases in some cases to protect tenants from excessive hikes, and this may still be applicable to contracts signed after July 2022.
