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The cap on rent increases in Turkey upon lease renewal fell from 31.49% in October to 31.23% in November 2026, the Turkish Statistical Institute (TÜİK) reported. The limit applies to residential properties and enclosed commercial premises, although the law allows larger adjustments in certain circumstances.

How Rent Increases Are Calculated

Annual rent increases are calculated using the average change in the consumer price index (TÜFE) over the preceding 12 months. TÜİK publishes this figure monthly, so the permitted percentage depends on the lease renewal date. Even if a contract stipulates a higher increase, the landlord must comply with the statutory cap.

The October limit was based on the consumer price index for September 2026. The cap subsequently fell by 0.26 percentage points. For a monthly rent of 20,000 Turkish lira, an increase of 31.23% would add ₺6,246. The new rent would reach ₺26,246 if the owner applied the maximum permitted increase. The parties may agree on a smaller amount, taking into account the lease terms and rents for comparable properties.

Lease Renewals and Tenants’ Rights

The rules governing rent increases upon lease renewal are set out in Article 344 of the Turkish Code of Obligations (Law No. 6098). They apply to residential properties and enclosed commercial premises. If the contract does not specify an indexation mechanism, a court may determine the rent, taking into account the average change in TÜFE, the condition of the property and the parties’ interests, within the statutory limit.

The law distinguishes between renewing an existing lease and signing a new agreement with a different tenant. The rent for a new occupant is determined when the contract is signed, whereas the TÜFE cap governs adjustments under existing tenancies. Market listings alone do not entitle a landlord to change the terms before the end of the current rental year.

The expiry of a lease does not automatically require a tenant to leave. Under Article 347, the agreement is extended for another year unless the tenant gives notice of departure at least 15 days before the end of the current term. A landlord cannot terminate a tenancy solely because its initial term has expired; termination requires grounds provided for by law.

When Can a Rent Increase Exceed the Cap?

After five years of tenancy, Article 344 provides a separate procedure for setting the rent. A court may determine a new amount with reference to inflation, the property’s condition and rents for comparable premises. The resulting increase may exceed the standard annual cap, but a landlord cannot unilaterally impose an arbitrary rate. For long-term leases, this offers a way to bring rental income closer to market levels, without guaranteeing the asking prices seen in property listings.

Before going to court, parties to most rental disputes must undergo mandatory pre-court mediation. This requirement has applied since September 1, 2023, and covers disagreements over rent, among other matters. If no agreement is reached, the dispute may proceed to court. Certain categories of cases are exempt.

How to Avoid Disputes Over Rent Increases

The statutory cap does not oblige landlords to raise rent by the maximum permitted percentage. When renewing a lease, the parties can agree on a smaller increase based on comparable market rents and the terms of the existing agreement. This approach can be particularly relevant when indexation would push a property's rent above that of similar listings.

“We calculate the new rent and compare it with market listings. If the indexed amount is significantly above market levels, we suggest a more moderate increase to the owner and agree on the terms with the tenant,” explains Svetlana Ozgen of DenizInvest.

The expert emphasizes that the annual rent adjustment mechanism should be established when the contract is first signed. It is typically based on the average consumer price index over the preceding 12 months. Agreeing on the mechanism in advance helps avoid unexpected demands and makes negotiations easier when the next renewal date arrives.

“I would not say that rent increases necessarily lead to conflicts. Of course, tenants are rarely pleased about higher costs, but if the indexation rules are known in advance, the increase does not come as a surprise,” Ozgen says. In her view, disagreements more often stem from unclear contract language or additional demands from landlords that were not discussed initially.

How the Restrictions Affect Investment Returns

International Investment analysts note that the rent increase cap does not reflect the actual dynamics of returns on Turkish real estate. The law restricts rent growth under existing leases, but newly let properties may command different market rates. Maintenance costs, taxes and the exchange rate of the lira also affect financial performance: nominal growth in local-currency receipts does not guarantee a comparable gain in US dollars or euros.

For investors, the terms of existing leases are especially important. The next indexation date, the length of the tenancy and the gap between current rent and market listings determine how quickly a property's income can change. A court review after five years provides landlords with additional options, but involves time and expense. These factors should be considered when buying property.

Frequently Asked Questions About Renting in Turkey

How much can rent increase in November 2026?

By no more than 31.23% upon renewal of an existing lease. The parties may agree on a smaller increase.

How is the permitted percentage determined?

It is based on the average change in the consumer price index (TÜFE) over the previous 12 months. The figure is updated monthly.

Does the cap apply to commercial property?

Yes, to leases of enclosed commercial premises. Different rules may apply to other types of property.

Can a landlord seek an increase above the cap?

After five years of tenancy, the law allows a court to review the rent in light of market rates and the property's condition.

Must a tenant leave when the lease expires?

No. In cases covered by the law, the lease renews automatically, and landlords need legal grounds to terminate the tenancy.