• Nazar Emlak

July 1 is expected to Decertify the 25 percent rent increase cap that has been causing problems between landlords and tenants. With the removal of the 25 percent increase limit, the answer to the question "Will rental prices rise" became a matter of curiosity. According to real estate agents, this is not expected to cause an extra price increase.

Due to the increases in rents, a 25 percent limit was imposed on the increase rates of residential rents in 2022, while the application was extended for one year in 2023. The period in question will expire on July 1.

Treasury and Finance Minister Mehmet Simsek, saying that they had no work on extending the regulation again, had signaled that this period would not be extended.

 Taylan, Chairman of TEMFED, made an assessment on the effects of the application and the process that will start from July 1.

 Reminding that many cities such as Istanbul, Ankara, Mersin received intensive migration after the Kahramanmaraş-based earthquake on February 6, 2023, Taylan said that some opportunists took advantage of this and raised rents abnormally.

 Taylan said, "At the moment, which citizen of ours, which type of housing is looking for, can meet this need for rent anywhere in Turkey. we didn't have this 7-8 months ago." said.

 If the raise limit is lifted, will prices increase?

Emphasizing that the demand surplus has disappeared, Taylan stated that it would not be right to create the perception that there will be a "shortage in rents" at the moment.

 Taylan, recalling that a legal regulation was implemented before the 25 percent limit, explained that rent increases in previous years were made by taking the average of the Consumer Price Index (CPI) and the Domestic Producer Price Index (YI-PPI).

 Taylan said, "I don't think the removal of the 25 percent limit from July 1 will have an extra impact on the market. After that, the most reasonable method is the inflation average. According to the inflation conditions, as soon as the annual CPI and YI-PPI average are reflected in the rent increases, landlords and tenants go through this process without facing too much." he spoke.