The Rent Increase Limitation in Lease Contracts May Change

 The article 57 of the Bill to Amend Several Laws and Decrees Having the Force of Law, dated 30 November 2018 and numbered 37 (the “Bill“) foresees revising the limit on increases of the rents for residences and roofed workplaces regulated in Article 344 of the Turkish Code of Obligations numbered 6098 (“Code“). 

Thereby, the limit on increases in rents for residences and roofed workplaces is currently under discussion in Parliament to be changed from Producer Price Index (PPI) to Consumer Price Index (CPI). According to the proposed article, rents for such real estates may not be increased more than the consumer price index increase of the previous year. It should be noted that the PPI is higher than the CPI. Accordingly, the rent increase will be lower upon the adoption of the Bill. 

Besides, the restriction against denominating rents in foreign currency or indexed to foreign currency as per the Communiqué amending the Communiqué (Communiqué number :2008-32/34) on Decree no:32 on the Protection of the Turkish Currency will continue to be in force.