Rent Adjustment
"How is commercial rent adjusted in Turkey?"
Quick Answer
Increases are generally limited by the TÜFE 12-month average under the Turkish Code of Obligations. After five years (and then every five years), a rent determination claim may allow the court to set fair market rent based on comparables and equity.
Rent Adjustment in Turkey
Rent adjustment is mainly regulated by the Turkish Code of Obligations and the lease agreement. The method, timing, and upper limits depend on whether the lease is residential or commercial, whether the tenant is considered a “trader” (tacir), and whether the lease is in TRY or indexed/foreign currency under applicable rules.
Key Points to Remember
- Default cap: annual increases typically cannot exceed TÜFE 12-month average (where applicable)
- Five-year rule: court can set fair rent after 5 years and then every 5 years
- Contract terms matter: indexation, increase clause, and payment currency drive outcomes
- Evidence: comparable rents, expert reports, and property condition are key in court
Practical Considerations
For commercial leases, disputes often arise around the validity of increase clauses, indexation, and whether the tenant qualifies as a trader. If negotiations fail, rent determination and adaptation claims may be used depending on the facts. For litigation strategy, timing (lease year/renewal), proper notice, and collecting comparable rent evidence are critical.
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