Minister of Justice Yılmaz Tunç announced that the upper limit of the rent increase rate will be applied as 25 percent for one year from July 2, 2023 to July 2, 2024.
Aziz Torun, Chairman of the Board of Torunlar REIC, who was a guest of Bloomberg HT, evaluated the effect of the 25 percent rent increase restriction on the demand in the sector in Turkey.
In his speech, Torun stated that the limit on rent increase is a very deterrent for those who will buy real estate for investment, and that there is a price difference of 20 to 30 percent between an apartment that has tenants and an apartment that is vacant recently. “In such a case, no one will want to rent the property.” Torun said that it would be more difficult to find a rental place under these conditions. Torun continued:
“People will say that I won’t rent it for nothing, because there will be a serious contraction in the supply because the rent figures are also limited since the tenant cannot get out when they rent. For this purpose, people will refrain from investing in real estate. So this will affect sales. (This arrangement) From now on, I think it will seriously reduce the rental supply as well.”