Business Place-Shop Rent Increase Calculation 2024 In Turkey

Legally Applicable Increase Amount for Business Places and Residences in Turkey for November 2024: Explanation with Examples

The rent increase rates for lease agreements in Turkey are regulated by Article 344 of the Turkish Code of Obligations. This article aims to protect tenants while determining the rent increase rates for both residential and business premises. The rent increase rate applicable for November 2024 is determined according to the data announced by the Turkish Statistical Institute (TÜİK). The Consumer Price Index (CPI) in October 2024 was 62.02% based on the twelve-month averages. Therefore, if a rent increase is made in November, it will be applied at this rate.

In this article, we will explain the rent increases for business places and residences for November 2024 with examples.

Rent Increase Rate for Residences: November 2024The rent increase rate for residences is determined according to the 12-month average CPI, as per Article 344 of the Turkish Code of Obligations. As of November 2024, this rate has been determined as 62.02%.

Example:

• Rent in November 2023: 8,000 TL

• CPI rate applicable for November 2024: 62.02%

Maximum possible rent increase for November 2024:

• 8,000 TL x 62.02% = 4,961.6 TL (increase amount)

• New rent: 8,000 TL + 4,961.6 TL = 12,961.6 TL

In this example, the rent of 8,000 TL in November 2023 can be increased to a maximum of 12,961.6 TL in November 2024.

Rent Increase Rate for Business Places: November 2024The same increase rate applies to business places. An increase of 62.02% can be made according to the 12-month average CPI.

Example:

• Rent in November 2023: 15,000 TL

• CPI rate applicable for November 2024: 62.02%

Maximum possible rent increase for November 2024:

• 15,000 TL x 62.02% = 9,303 TL (increase amount)

• New rent: 15,000 TL + 9,303 TL = 24,303 TL

In this example, the business rent of 15,000 TL in November 2023 can be increased to a maximum of 24,303 TL in November 2024.

Legal Regulations and Points to ConsiderTurkish Code of Obligations Article 344: "Agreements between the parties regarding the rental fee applicable in renewed lease periods are valid only if they do not exceed the increase in the consumer price index (CPI) of the previous lease year. This rule is applied to both residential and roofed business premises leases. If the parties do not make an agreement in this regard, the rent is determined by the judge, provided it does not exceed the CPI increase rate of the previous lease year."

This article sets the ceiling limit for rent increases. Agreements between the lessor and the tenant cannot exceed these limits.

ConclusionFor November 2024, rent increases must be made according to the CPI rate of 62.02% announced by TÜİK. Both residential and business leases must comply with Article 344 of the Turkish Code of Obligations, and legal boundaries must be adhered to. This ensures the protection of tenants as well as the legal rights of landlords. When renewing a lease agreement, these calculations should be taken into account, and the rent increase should be made in accordance with these legal regulations.

Source: Turkish Statistical Institute (TÜİK)