September 2024 rent increase rate 64.91
D-PPI (Domestic Producer Price Index) and CPI (Consumer Price Index) inflation rates are announced in the first week of each month.
When the rates are announced, it becomes clear at what rate the rent increases will be made.
With the published statistical data, the CPI table, which determines the upper limit of the rents to be renewed in September 2024, was also announced.
According to the statement of TURKSTAT, CPI (Consumer price index monthly) increased by 2.47% in August.
Comparative increase table in the CPI, which accepts 2005 as the beginning of the calculation;
1- 2.47% in August 2024 compared to the previous month
2- 51.97% compared to the same month of the previous year
3- 31.94% compared to December of the previous year (2023-December)
4- 64.91% increase compared to twelve-month averages
realized.
The amount of increase in business and residential rents is calculated according to the twelve-month AVERAGE change in the CPI.
Accordingly, in September 2024, the rent amount can be increased by a maximum of 64.91%.
WHAT IS THE LEGAL BASIS OF THE RENT INCREASE RATE?
In Article 343 of the Code of Obligations; “Except for the determination of the rental price in the lease agreements, no changes can be made against the tenant.”
Again in Article 344 titled “Determination of the rental price”; “The agreements of the parties regarding the rental price to be applied in the renewed lease periods are valid, provided that they do not exceed the rate of change in the consumer price index according to the twelve-month averages in the previous lease year. This rule also applies to lease agreements with a term longer than one year. (With Article 56 of the Law dated 17/1/2019 and numbered 7161, the phrases “increase in the producer price index” in the first and second paragraphs of this article have been changed as “change according to the twelve-month averages in the consumer price index”).
If the parties have not made an agreement on this matter, the rent shall be determined by the judge according to equity, taking into account the condition of the leased property, provided that it does not exceed the rate of change according to the twelve-month averages in the consumer price index of the previous lease year.
In accordance with this legal regulation, the upper limit for rent increases is determined as the twelve-month average of the CPI for the previous year.
CAN AN INCREASE EXCEEDING THE UPPER LIMIT BE MADE?
With the amendment made to Article 344 of the Code of Obligations on 17.1.2019, the upper limit for rent increases was set as the twelve-month average of the CPI.
According to the Inflation and Price data table published by TURKSTAT; the maximum rate to be used for rent increases in September 2024 was announced as 64.91%. The property owner cannot unilaterally determine a rent amount above this rate. However, if the parties mutually agree, they can determine the rent increase amount above or below the legal limit.
Source: TurkStat CPI 2.9.2024
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