Türkiye lifts 25% cap on housing rent increases amid high inflation

Treasury and Finance Minister Mehmet Şimşek confirmed the decision during a recent television appearance. He stated that the temporary cap, introduced in June 2022, was designed to offer short-term relief but will now expire. Effective today, rent increases will once again be based on the 12-month Consumer Price Index (CPI) average, as was the practice prior to the implementation of the cap.

In response to concerns over rising living costs, the government has set an inflation-adjusted cap on rent increases at 50 percent. Despite this measure, the average rent in major cities has surged significantly. In Istanbul, average rents have reached up to 20,000 Turkish Liras ($610), while Ankara and İzmir have seen average rents climb to 17,000 and 19,000 liras, respectively.

The expiration of the 25 percent rent increase cap comes amid ongoing high inflation, which has heavily impacted the cost of living in Turkey.

Minister Şimşek emphasized that while the cap provided temporary relief, returning to CPI-based increases is necessary for the long-term stability of the housing market. (ILKHA)