Rental increase rate is determined for November 2019 by announcing the Consumer Price Index (CPI) for this month and determining its average increase for the previous 12 months.
After the Turkish Statistical Institute announced inflation, the Domestic Producer Price Index, and the Consumer Price Index, the rent increase for November became clear.
Consumer Price Index for November
In November 2019, the Consumer Price Index (CPI) in Turkey (2003 = 100) increased by 2% compared to the previous month, 10.59% compared to December of the previous year, 8.55% compared to the same month of the previous year, and 16.81% compared to the average of twelve months.
Thus, an increase of 16.81% will be applied to tenants who will renew their leases in November depending on the average of 12 months CPI rate.
How to calculate Rent Increase Rate
The Ministry of the Treasury and Finance and the Strategy and Budget Directorate prepared the Medium-Term Economic Program (2019-2021) and announced it in September 2018.
According to the New Economy Package, rent hikes are no longer based on the Producer Price Index (PPI), but rather on consumer price index (CPI).
However, this figure is the highest rate that the landlord can apply.
So the landlord and tenant can reach a compromise by agreeing to increase the rent by less than this percentage.
According to this ratio, if the rent of the real estate was 1000 TL, the maximum increase will be 168.1 TL, and the upper limit of the new contract will be 1168.1 TL.
Edit By: Realty Group