TÜRKIYE Trends and Developments Contributed by: Merter Özay, Özay Law Firm
not be upheld in judicial review. A 2025 decision of the Court of Cassation confirms that clauses requiring substantial payments upon breach, where they are closely linked to the continuation of the lease rela - tionship, may fall within the scope of arrangements considered incompatible with the applicable legal framework. This approach reflects an established principle that contractual arrangements should be assessed in light of mandatory legal provisions governing lease relationships. For practitioners and investors, this highlights the importance of structuring lease agree - ments in a manner that is both commercially effec - tive and aligned with the applicable legal framework. This approach reinforces legal certainty by ensuring that contractual arrangements operate within clearly defined statutory boundaries. Turnover-based rent models: flexibility and legal structuring Turnover-based rent models have gained increasing traction in commercial leasing, particularly in sectors characterised by demand variability, such as retail. This trend reflects the market’s capacity to adopt commercially innovative leasing structures within the existing legal framework. These structures align rental income with tenant per - formance, thereby facilitating a balanced allocation of risk and supporting the continuity of lease relation - ships under evolving economic conditions. From a commercial perspective, they provide a mechanism to maintain occupancy and support tenant sustainability while preserving a degree of income predictability. From a legal perspective, their effectiveness depends on precise drafting. The definition of turnover, the scope of reportable revenues, audit rights, and enforcement mechanisms should be clearly articu - lated to minimise ambiguity and potential disputes. Hybrid structures combining fixed and variable rent components may further increase complexity, requir - ing a clear allocation of rights and obligations between the parties. When appropriately structured, such mod - els can contribute positively to asset value; however, if
not carefully implemented, they may give rise to legal and financial risks. Mandatory mediation: efficiency and commercial continuity The introduction of mandatory mediation in lease disputes has influenced the dispute resolution land - scape. By requiring parties to engage in mediation prior to litigation, the system supports timely, cost- effective, and commercially pragmatic outcomes. This contributes to a more efficient dispute resolution envi - ronment, which is a key consideration for investors assessing legal risk exposure. This is particularly relevant in disputes concerning rent adjustment, lease termination, and eviction, where timing and continuity are often key considerations. Beyond procedural efficiency, mediation provides a platform for negotiated solutions that may help pre - serve commercial relationships ‒ an outcome that may not always be achievable through adversarial litiga - tion. In this respect, it operates not only as a legal requirement but also as a practical tool in asset and relationship management. Tiny house developments: emerging opportunities and regulatory gaps The sustained increase in real estate prices has accel - erated interest in alternative asset classes, with tiny house developments emerging as a notable trend. These projects appeal to both investors and end-users due to their relatively low capital requirements, opera - tional flexibility, and alignment with evolving lifestyle preferences favouring mobility and simplified living. From an investment perspective, they provide access to the real estate market with reduced reliance on financing and potentially shorter return horizons. However, their legal qualification remains subject to ongoing assessment. Turkish law does not yet provide a comprehensive and specific regulatory framework governing such structures, which may give rise to uncertainties regarding:
661 CHAMBERS.COM
Powered by FlippingBook