Commercial Real Estate Leasing in Türkiye: 2025 Market Overview

Current Rent Increase Rates

As of December 2025, the legal ceiling for rent increases on commercial properties in Türkiye — including shops, offices, and warehouses — is 35.91%. This cap is determined by the Turkish Statistical Institute (TÜİK) based on the 12-month average of the Consumer Price Index (CPI). In April 2025, the applicable adjustment rate was 51.26%.

Important legal note: Landlords and tenants may mutually agree on a lower rent increase; however, any rate above the CPI average is invalid, even if stipulated in the contract. According to Article 344 of the Turkish Code of Obligations, rent increases for renewed lease terms cannot exceed the 12-month CPI average published by TÜİK.

Commercial Leasing and Tax Implications

All commercial leasing in Türkiye is subject to taxation. In 2025, there is no tax exemption for income generated through the rental of business premises. Therefore, all commercial rental income is taxable under income tax regulations.

Individuals earning more than 18,000 TL from commercial rental income in 2025 must file an annual tax return. Landlords are required to declare this income and pay taxes according to the applicable income tax brackets.

Allowable deductible expenses that can be offset against taxable rental income include:

• insurance costs
• property tax
• maintenance and repair expenses
• depreciation costs

Negotiation Framework and Practical Tips

For international investors and entrepreneurs considering commercial real estate leasing in Türkiye, understanding legal limits and market norms is essential. Below are the key negotiation principles:

• rent increase ceiling is absolute: landlords cannot request more than the legally set rate of 35.91% for December 2025
• flexibility for both parties: tenants and landlords can agree on a rent increase lower than the CPI-based limit
• producer price index (PPI) does not apply: only CPI averages are considered for rental adjustments

While online resources primarily focus on taxation and legal frameworks, practical negotiation strategies may vary depending on property location, lease term, and tenant profile. Therefore, engaging a local real estate consultant or legal advisor is highly recommended to navigate Türkiye’s evolving commercial property market effectively.