The statutory cap on rent increases is one of the issues that most concerns landlords and tenants in leases renewed each year. Article 344 of the Turkish Code of Obligations no. 6098 (Türk Borçlar Kanunu, TBK) limits the maximum increase rate applicable to residential and roofed workplace leases (konut ve çatılı işyeri kiraları) to the twelve-month average of the consumer price index (TÜFE). In this article we examine the rules in force as at 2026, the differences between residential and workplace leases, and the disputes most frequently encountered. In disputes arising from rent increases you may draw on our work in the field of lease and eviction law.
Key Takeaways
- As at 2026, the only statutory cap on rent increases is the twelve-month average of TÜFE for the preceding lease year, under TBK m. 344.
- The temporary ceiling of 25 per cent applied to residential leases between 2022 and 2024 ceased to be in force as of 1 July 2024.
- Residential and roofed workplace leases are subject to the same TÜFE cap; even where a higher rate has been agreed in the contract, the statutory limit applies.
- In leases lasting longer than five years, or renewed after five years, the judge may determine the new rent by taking comparable rents into account alongside TÜFE.
- Because the TÜFE rate for the current period changes every month, the official TÜİK figure for the month in which the contract is renewed must be used when calculating the increase.
What Is the Statutory Cap on Rent Increases?
Under TBK m. 344, in residential and roofed workplace leases the increase rate to be applied in the renewed lease period may not exceed the rate of change in the twelve-month averages of the consumer price index in the preceding lease year. Because this limit is mandatory in nature, it cannot be set aside by the parties by agreement.
How Is the Twelve-Month TÜFE Average Calculated?
TÜİK (the Turkish Statistical Institute) announces each month the average of the consumer price index figures for the preceding twelve months; the rate in force in the month in which the lease is renewed constitutes the maximum increase limit for that period. For example, in a contract renewed in September, the twelve-month TÜFE average for August announced by TÜİK is taken as the basis.
What Became of the 25 Per Cent Ceiling Between 2022 and 2024
Under the temporary provision that entered into force on 11 June 2022, the increase rate in residential leases was limited to 25 per cent whatever the TÜFE rate might be. That temporary ceiling came to an end as of 1 July 2024, and in 2026 the only limit in residential leases, as in workplace leases, is the twelve-month average of TÜFE. The official text of the provision and of its expiry date can be reached from the archive of the Resmî Gazete (the Official Gazette).
What Is the Current Rent Increase Rate in 2026?
During 2026 the rent increase rate changes with the TÜFE data announced each month; for contracts renewed in the September 2026 period, the applicable maximum rate has been announced as 31.79 per cent (the twelve-month TÜFE average for August 2026 published by TÜİK). That rate has been falling gradually since the peak of 65.07 per cent in July 2024.
Why It Matters to Follow the Monthly Change
Because the rent increase rate is not a fixed figure, the current TÜİK data must be checked according to the month in which the contract is renewed. Increase demands based on an incorrect or out-of-date rate may be challenged by the tenant, and the return of any amount collected in excess may come onto the agenda.
Check the Current Rate With the Calculation Tool
To calculate quickly the maximum increase rate applicable according to your contract’s renewal date, and the new rent, you may use KCD Hukuk’s rent increase rate calculation tool. The tool is updated in line with current TÜİK data.
| Period | Applicable Maximum Increase Rate | Legal Basis |
|---|---|---|
| June 2022 – June 2024 (residential) | 25% (temporary ceiling) | Temporary provision, now expired |
| After July 2024 (residential and workplace) | Twelve-month average of TÜFE | TBK m. 344 |
| September 2026 (renewed contracts) | 31.79% | TÜİK data for August 2026 |
Is There a Difference Between Residential and Workplace Leases?
TBK m. 344 subjects residential and roofed workplace leases to the same maximum increase limit; there is no statutory difference between the two types of lease as regards the increase rate. Differences in practice stem rather from the breadth of freedom of contract and from the bargaining power of the parties.
Additional Contractual Provisions in Workplace Leases
In workplace leases the parties may make additional arrangements concerning the rent, such as different payment schedules or calculation indexed to foreign currency, provided they remain within the TÜFE limit; the final increase rate may nonetheless not exceed the statutory cap. In contracts where the rent is set in foreign currency or indexed to it, the restrictions of the special legislation must also be borne in mind.
The Judge’s Discretion in Leases Longer Than Five Years
Under TBK m. 344/3, in leases with a term longer than five years, or renewed after five years, the rent to be applied in each new lease year that follows may be determined equitably by the judge, taking into account the condition of the leased property and comparable rents alongside the TÜFE average. This provision makes it possible to update rents that, in long-term leases, have fallen sharply out of step with market conditions.
What Happens if a Rate Above the Statutory Cap Is Agreed in the Contract?
Even where an increase rate above the TÜFE limit has been agreed in the lease, that provision is regarded as invalid as regards the part exceeding the statutory cap, because of the mandatory nature of TBK m. 344. The tenant is not obliged to pay the amount exceeding the limit and may claim the return of any amount paid in excess.
Recovery of Rent Paid in Excess
The tenant may claim back the rent difference paid above the statutory cap, within the general limitation periods (zamanaşımı) running from the date on which payment was made, relying on the provisions on unjust enrichment or on breach of contract. In practice this claim is generally raised by way of enforcement proceedings (icra takibi) or an action for debt; for the statutory interest rates that will run on the receivable, you may examine the difference between statutory interest, default interest and advance interest.
How a Landlord May Seek to Have an Increase Accepted
If the tenant does not accept an increase above the statutory cap, the lessor may not terminate the contract on that ground; the route to follow in rent increase disputes is to bring an action for determination of rent (kira tespit davası). An action for determination of rent has the current rent fixed by the court on the basis of TÜFE and, where necessary, comparable rents. Decisions given by the courts in similar disputes can be reached through the case-law search system of the Yargıtay (the Court of Cassation).
The Route to Follow in Rent Increase Disputes
Where a disagreement arises between the parties over the increase rate, it is advisable first to clarify the demand by written notice and, if necessary, to resort to mediation; if no agreement is reached, an action for determination of rent may be brought. Since mediation as a condition precedent to litigation (dava şartı arabuluculuk) may apply to such disputes in commercial lease relationships, this point should be checked before the process begins; detailed information on the subject can be found in our article on mandatory mediation in commercial cases.
Timing in an Action for Determination of Rent
An action for determination of rent may be brought before the new lease period begins or during the lease year; the rent fixed in an action brought before the new period begins, however, applies from the start of the following lease year. A lengthy proceeding does not prevent the parties from continuing to make payment on the basis of the previous rent.
TÜFE Rates in Recent Months and the Downward Trend
The rent increase rate has been falling steadily since the peak of 65.07 per cent in July 2024; this decline directly reflects the slowing of annual inflation. Parties about to renew a contract should be sure to check the current rate for their own period, because it may differ from month to month.
| Period | Twelve-Month TÜFE Average Increase Cap |
|---|---|
| July 2024 (peak) | 65.07% |
| July 2026 | 32.03% |
| August 2026 | 31.90% |
| September 2026 | 31.79% |
The Effect of the Downward Trend on Leases
The gradual decline in the rate means that newly renewed contracts will carry a lower increase than in the previous year; this may, however, give rise to a gap in expectations between tenant and lessor. Checking a few days before the renewal date whether the current TÜİK data has been published reduces the risk of miscalculation.
Common Mistakes in Calculating the Rent Increase Rate
The mistake most often encountered in practice is the assumption that the 25 per cent ceiling left over from earlier years is still in force; that ceiling came to an end in mid-2024 and is no longer applied. Another mistake is confusing the monthly rate of change in TÜFE with the twelve-month average TÜFE rate; the only figure taken as the basis in the law is the twelve-month average.
Calculating With Data From the Wrong Month
If the TÜİK data for the month in which the lease is renewed has not yet been published, a provisional calculation may be made with the previous month’s figure; the final increase rate, however, becomes definite once the official data for the month of renewal has been published. Where this distinction is overlooked, one of the parties may pay too little or too much.
What Happens if No Increase Rate Is Stated in the Contract?
Where the lease contains no provision at all on the increase rate, and no separate agreement is reached between the parties, the rent for the new period is again determined according to the twelve-month average of TÜFE within the framework of TBK m. 344. The silence of the contract does not give the lessor the benefit of a right to demand an unlimited increase.
Implied Renewal and Notice of Increase
If neither party gives notice of termination when the term of the lease expires, the contract is automatically extended for a further year on the same terms, but with the statutory maximum increase rate applied. The lessor is not obliged to notify the rent for the new period in writing, though doing so is advisable in order to forestall disputes.
How Is the Gap Between the Rent Increase and Inflation Managed?
In periods of high inflation, landlords may argue that the TÜFE cap lags behind the market rent, while tenants may argue that the increase outstrips their income; the legislature has sought to balance this tension through the TÜFE average. The judicial discretion allowed in leases longer than five years serves to correct this imbalance over the long term.
The Difference Between the Market Rent and the Statutory Cap
Where comparable rents in an area run well above the statutory increase cap, the only route open to the landlord is to bring an action for determination of rent based on comparable rents once the five-year period has expired. Demanding an increase above the TÜFE cap, whether by contract or unilaterally, before that period has expired is not legally valid.
Must Notice of a Rent Increase Be Given in Writing?
The law does not require notice of a rent increase to be given in writing; for ease of proof, however, it is advisable to notify the increase demand and the rate applied in writing, if possible through a notary public or by registered electronic mail. Oral notifications may create difficulties of proof in any dispute that later arises.
Implied Acceptance Through a Bank Receipt
Payment by the tenant of the new rent notified by the lessor without objection may in practice be regarded as implied acceptance; that does not, however, extinguish the tenant’s right to reclaim the excess if it is later established that the amount paid exceeded the statutory cap. Bank receipts constitute important evidence for the future, for lessor and tenant alike.
Just as non-payment of the rent may be a ground for eviction, disputes over the increase rate may also give rise to tension between tenant and lessor; for how eviction processes work, you may look at our article on tenant eviction 2026.
The Relationship Between Rent Increases and Eviction Processes
A tenant’s refusal to accept an increase above the statutory cap does not in itself constitute a ground for eviction; the lessor may not start tenant eviction proceedings on that ground. Complete non-payment of the rent, on the other hand, brings into play the provisions on default, which are a separate route to eviction; we have dealt with that subject in detail in our guide to tenant eviction. Nor is it legally possible, before the ten-year extension period has expired, to bring an action for eviction on grounds of need relying solely on a disagreement over the increase; the claim of need must rest on an independent and genuine ground.
Where a rent increase dispute is combined with a claim of need, the process described in our article on the action for eviction on grounds of need comes into play. TÜFE data may be followed on the official TÜİK website, and the lease provisions of the Turkish Code of Obligations on the TBMM legislation page.
What Will the Other Side Do?
The tenant, as the other side in a rent increase dispute, also has a line of defence; being prepared for these objections determines the course and the length of an action for determination of rent.
- “The increase rate demanded exceeds the statutory cap, I will not pay it.” This objection is met by comparing the demand with TÜİK’s official twelve-month average TÜFE figure for the month in which the contract was renewed; it must be shown that the rate demanded remains within that limit.
- “I paid the new rent without objection, but that does not count as implied acceptance.” This defence is assessed by examining, through bank receipts and correspondence, whether a written objection was made at the time of payment.
- “The rate written in the contract is valid, the TÜFE cap does not bind me.” Under the mandatory provision of TBK m. 344, if the rate in the contract exceeds the statutory cap the excess part is invalid in any event; this point is met by relying directly on the text of the law.
- “The five-year period has not yet expired, an increase cannot be sought at the judge’s discretion.” This objection is met with the contract records showing the start or renewal date of the lease.
Which objection comes to the fore varies according to the term of the contract and the payment history; it is therefore important to gather the current TÜİK data and the records of correspondence before an action is brought. To assess in advance which defence your file will encounter, you may get in touch.
Frequently Asked Questions
From what source is the rent increase rate for 2026 followed?
The current rate is followed from the twelve-month average consumer price index data that TÜİK announces each month; KCD Hukuk’s rent increase rate calculation tool is also updated in line with that data.
Is the 25 per cent ceiling on rent increases still in force?
No; that temporary provision applied only to residential leases and only until 1 July 2024. After that date the only limit is the twelve-month average of TÜFE.
Is there a different increase cap for workplace leases?
No; TBK m. 344 subjects residential and roofed workplace leases to the same TÜFE cap, and there is no difference between the two types of lease as regards the increase rate.
Can the landlord apply an increase at the rate written in the contract?
If the rate agreed in the contract exceeds the statutory TÜFE cap for that period, the excess part is invalid; the tenant is obliged to pay only the increase up to the statutory limit.
What should a tenant who objects to a rent increase do?
A tenant who considers that the increase demanded exceeds the statutory cap may object in writing; if the disagreement persists, either party may bring an action for determination of rent and ask for the current rent to be fixed by the court.
How is the increase determined in leases longer than five years?
Under TBK m. 344/3 the judge may fix an equitable rent, taking into account the condition of the leased property and comparable rents alongside the TÜFE average.
Does the rent increase rate change every month?
Yes; the twelve-month TÜFE average announced by TÜİK is updated each month, so the official data for the month in which the contract is renewed must be taken as the basis, and the rate for the preceding or the following month cannot be used.
Can a landlord who demands an increase above the statutory cap have the tenant evicted?
No; a tenant’s refusal to accept an increase above the statutory cap does not in itself constitute a ground for eviction, and the lessor may only bring an action for determination of rent to have the current rent fixed.
Sources
- Mevzuat Bilgi Sistemi (the Legislation Information System, mevzuat.gov.tr)
- Türkiye İstatistik Kurumu (TÜİK, the Turkish Statistical Institute)
- Resmî Gazete (the Official Gazette, resmigazete.gov.tr)
- Yargıtay Decision Search System
- tbmm.gov.tr
Related Articles
- Time Limits and Consequences of Objecting to Enforcement Proceedings: 2026 Guide
- Statutory Interest, Default Interest and Advance Interest: The Differences
- Mandatory Mediation in Commercial Cases: Scope, Time Limits, Final Minutes
- Tenant Eviction 2026: The 10-Year Extension, Need and the Undertaking to Vacate
- Action for Eviction on Grounds of Need: Conditions and Proof
- Purchase of Immovable Property by Foreigners and the Citizenship Process (2026)
This article is for general information purposes and does not take the place of legal advice. Your particular situation requires a separate assessment of your own file. This article was prepared on the basis of the legislation in force as at 17.09.2026. The TÜFE and increase rate data in the article relate to the September 2026 period and are updated each month.
Av. Yahya Köse
Enforcement and Bankruptcy Law, Real Estate Law, Lease and Eviction Law, Criminal Law, Dispute Resolution, Preventive Law
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