Pursuant to Law no. 7456 (‘’the Law’’) published in the Official Gazette on July 15, 2023 (No. 32249), the deadline set forth for 25% increase rate limit on the rental fee of residential properties is extended until July 1, 2024, continuing the regulation introduced last year.
The Law has added a provisional article to the Turkish Code of Obligations (No. 6098) which states that the agreements regarding the rental fee increase to be applied in the renewal periods between July 2, 2023 and July 1, 2024 shall not exceed 25% of the previous year's rent.
Relevant article of the Law further stipulates that this provision shall also be applied to rental contracts with a term of more than one year. Increases above the limit (i.e. 25%) shall be invalid.
