The maximum rate of rent increase to be applied in renewals of lease agreements is clearly determined in the Code of Obligations (M 344). Accordingly, the rate of rent increase can be as much as the rate of Domestic Producer Price Index. However, the announcement by the Turkish Statistical Institute of the four different values of the Domestic Producer Price Index as “Change Rate According to Twelve-Month Averages”, “Annual Change Rate”, “Change Rate According to December” and “Monthly Change Rate” creates confusion. According to the settled decisions of the Supreme Court, the rate to be applied as the rent increase rate is “The Rate of Change in Domestic Producer Price Index According to the Twelve-Month Averages”. This rate is the highest rate of increase that can be applied in the renewal of lease agreements, and if the rent increase rate written in the agreement is lower than the Domestic Producer Price Index, the increase amount written in the agreement will be valid. On the contrary, if the rent increase is more than this rate, the determined rent increase rate will not be applied because it will be against the mandatory provisions of the law of obligations, and the Domestic Producer Price Index rate will be applied.
