The Turkish government intends to lift the twenty-five percent restriction on increasing apartment rental fees from July 1 and no longer extend its validity, TGRT Haber TV channel reported, citing Justice Minister Yilmaz Tunca.
⠀
The Turkish authorities previously extended until July 2024 the restriction for landlords on raising apartment rental fees; it can be increased by a maximum of 25%. Landlords opposed this restriction because, in their opinion, the annual inflation rate and the consumer price index should be taken into account when determining rent. According to official statistics, annual inflation in Turkey in January amounted to 64.86%. At the same time, a group of independent economists ENAG estimates inflation at 129.11%.
⠀
“To prevent exorbitant rent increases and ensure a balance between income and rent, the government introduced a 25 percent cap on rent increases. Last year, this rule was extended and tenant complaints were resolved. Justice Minister Yilmaz Tunc responded to the question “Will the 25 percent cap be extended in July?”. Tunj announced that the 25 percent cap on increases, which was introduced following the exorbitant rise in rental prices in the last two years, was in effect. will end on July 1. The minister said that the decree will no longer be extended,” the TV channel reported.
⠀
During the election campaign last year, Turkish President Recep Tayyip Erdogan promised to solve the problem of constantly rising prices for rental real estate; the authorities are discussing the introduction of a tax for owners of empty apartments – a number of landlords prefer not to rent out apartments, but to wait for the stabilization of the lira exchange rate or find a tenant willing to sign a contract in dollars.
⠀
Turkish civil courts are inundated with lawsuits regarding the cost of renting apartments and demands for eviction of tenants, hearings are scheduled no earlier than one year after filing a claim, and in general the process takes at least two years.
A number of experts and media in Turkey say that the problem of rental prices in the country will soon turn into a social crisis. In particular, the Dünya newspaper previously noted that “the astronomical rise in housing prices and rents due to high demand has brought landlords and tenants face to face.”
⠀
Landlords are trying to evict their former tenants in order to rent the property at a higher price. Renters are also having difficulty finding rental apartments that fit their budgets.
