TÜRKIYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
the policy rate at 50% in an effort to combat inflation. In the ongoing efforts to combat infla - tion, housing sales have remained a sought-after investment option, even in the face of increasing property prices. According to data from the Union of Cham - bers and Commodity Exchanges of Türkiye, the house price index for new homes increased by 29.4% as of December 2024 on an annual basis. Additionally, statistics from the Turkish Statistical Institute indicate that residential real estate sales in 2024 rose by approximately 20.6% compared to 2023, totalling 1,478,025 sales. On the other hand, the number of houses sold to foreign individuals, which had increased in recent years due to the “golden passport” possi - bility, decreased by 32.1%, amounting to 28,781 sales in total. Moreover, due to the increase in house prices and high interest rates, mortgaged sales decreased by 53.8% in the first half of the year compared to the same period of the previ - ous year. Re-Determination of Rental Fee and Inflation The 25% cap on the maximum rent increase limit stipulated in the regulation for the determina - tion of the new period rental rates, which was introduced as of June 2022 and renewed in July 2023, was not renewed again as of July 2024. This led to the application of the rent increase provision stipulated in the law in the lease agree - ments once again. According to the relevant pro - vision, if the rental fee is denominated in TRY, the rental fee may be increased according to the consumer price index (12 months’ average) but no higher. Given the ongoing inflationary environment, removing the 25% ceiling on rent increases and
enforcing the legal provision may present chal - lenges for the average consumer’s budget. Shopping Malls Continue to Thrive in 2024 Despite Inflation In December 2024, Türkiye experienced a high inflation rate of 44.38% compared to Decem - ber 2023. However, the Shopping Mall Retainer Turnover Index for 2024 revealed an impressive turnover increase of 65% throughout the year, exceeding the inflation rate. The index, which stood at 100 basis points in 2010, has esca - lated to 3,117 points in 2024. Additionally, the total turnover per square metre in 2024 reached TRY147,814. Real Estate Tokenisation in the Turkish Real Estate Sector At the beginning of 2025, a USD1 billion agree - ment was established to facilitate collaboration on the integration of real estate tokenisation into Türkiye’s real estate sector. Real estate tokenisation involves representing property as blockchain-based tokens, enhancing transpar - ency, liquidity and accessibility in real estate investments. This initiative marks a significant step towards incorporating blockchain technol - ogy into Türkiye’s real estate sector. Growing Hotel Deals in Türkiye In 2025, a substantial increase in hotel invest - ments is projected, positioning Antalya as a premier destination for summer tourism. Nota - bly, the tourism sector in Antalya will benefit from the addition of eight new five-star hotels. Among these developments, one of the estab - lished Turkish companies in the tourism sector, with over a decade of experience in Türkiye, has made a significant investment of TRY1.7 billion (approximately USD46.8 million). This invest - ment has received approval from the Ministry with an “EIA Affirmative Decision” , thus initiating
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