The maximum rate of rent increase to be applied in the renewal of lease agreements is clearly defined in the Code of Obligations (M 344). Accordingly, the maximum rate of rent increase can be up to the rate of the Domestic Producer Price Index “D-PPI”. However, the “Rate of Change According to the Twelve-Month Averages” of the D-PPI by TURKSTAT , “Annual Rate of Change” , “Rate of Change Compared to December” and “Monthly Rate of Change” The explanation of four different values creates confusion. According to the established decisions of the Court of Cassation, the rate to be applied as the rent increase rate is “D-PPI Change Rate According to Twelve-Month Averages” is. This rate is the maximum increase rate that can be applied in the renewal of lease agreements, and if the rent increase rate written in the contract is lower than the D-PPI, the increase amount written in the contract will be valid. On the contrary, if the rent increase is determined more than this rate in the lease agreement, the determined rent increase rate will not be applied because it will be contrary to the mandatory provisions of the law of obligations, and the D-PPI rate will be applied.
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