After the introduction of the Presidential
Decree No. 85 prohibiting the determination of rental fees based on foreign
currency for certain lease agreements a few months ago, the producer price
index (PPI), which is the cap for rent increases, is now replaced with “twelve-month
average change in consumer price index” with the passing of the Omnibus Bill No.
7161. The said bill was published in the Official Gazette on January 18th,
2019 and amended Article 344 of the Turkish Code of Obligations. According to
the Omnibus Bill No. 7161, this change will be applicable starting from January
1, 2019.