The Turkish Statistical Institute (TÜİK) has shared the highly anticipated inflation data for April with the public. The announced figures have also redefined the rent increase rates that directly concern millions of tenants and homeowners. 3% per month ve 37.86% per year Inflation marks the beginning of a new era for those whose leases are due to be renewed.
Rent Increase Rate Will Be Applied as 48.73%
According to TÜİK data, with the announcement of April inflation, the payments that can be made to homes and workplaces Maximum rent increase rate 48.73% This rate is the highest increase limit that can be applied to tenants whose lease contracts expire this month (May 2025). The previous month (April 2025) this rate was 51.26%. Although this decrease indicates a slight slowdown in the rate of rent increases, the rate is still high. Therefore, tenants who will renew their contracts in May will face a maximum increase of 48.73% on top of their current rents.
Legal Basis for Rent Increase: 12 Month Average of CPI
According to legal regulations in Türkiye, rate of increase that can be made to housing rents, the month before the month in which the increase will occur, as announced by TÜİK Consumer Price Index (CPI) change rate based on twelve-month averages Landlords have the right to increase rents by a rate equal to or below this rate. For example, a rent increase in May would be based on the twelve-month average of the April CPI. This practice aims to protect tenants against sudden and high-rate increases.
Freedom of Contract and Index Application in Workplace Leases
In business premises rents The situation is slightly different from residential rents. The rate of increase that can be made to business rents is primarily applied in accordance with the rate determined in the lease agreement between the parties. However, if the lease agreement includes a provision that an increase will be made according to one of the indexes announced by TÜİK (mostly CPI), in this case the calculation is made by looking at the change rate of the relevant index announced by TÜİK for the month before the month in which the rent increase will be made. Business owners also have the right to increase the rent at a rate equal to or lower than this determined index rate. If no rate is specified in the agreement or if the determined rate is above the twelve-month average of TÜFE, the legal limit, the twelve-month average of TÜFE, is applied.
Impacts and Expectations on the Rental Market
The announced inflation data for April and the rental increase rate of 48.73% determined accordingly are expected to have significant effects on the rental market in the upcoming period. Considering the high rental levels, especially in big cities, this rate may increase the financial burden of tenants even more. For landlords, the expectation of obtaining a return above inflation continues. However, they do not have the opportunity to make an increase above the legal limit. It continues to be a matter of curiosity how the rental increase rates will trend in the coming months depending on the course of inflation. Economic developments and policies to combat inflation will directly affect the balances in the rental market.
