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To follow up on this, the case you mentioned apertains to commercial property and so does not read across to reseidential property. I have gone ahead and spoken to numerous other lwayers and people familar with the subject and as far as I am concerned all residential rental agreements, old and new, are subject to a maximum increase of Year-On-Year change in Producer Price Index (UFE).
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it is regulated that the validity of the agreement between the parties in relation to a rent increase rate depends on the increase’s not exceeding the
“producer price index”.
In the absence of any provision within the lease relating to a rent increase, a judge will determine the rent for the new lease period. The judge is instructed to take into consideration the condition of the leased property, subject to the above-stated requirement that the producer price index will limit the maximum increase allowed.
Best Regards,
Attorney Gamze Sharman