Remarkable changes have been introduced to Turkish lease regulations with The Law No. 7161 on Amendment to Tax Law and Certain Other Laws and Decree Laws (“Omnibus Law”) published on the Official Gazette of January 18, 2019. The Omnibus Law altered the cap on rent increase rates regarding housing and workplaces. The Regulation amended the maximum increase rate regulated in Article 344 of the Turkish Code of Obligations No. 6098 (“TCO”) by restricting the rent increase rate to “change in averages of the consumer price index in twelve months” (“CPI”). With this amendment, “increases to the producer price index” (“PPI”), which was the previous upper limit, has been removed so that lessees could have better protection, given the CPI tends to be more stable than the PPI.

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