Economists slam regulation on rent increase rate: “It will cause higher increases”
Economists have commented that the measure announced by Justice Minister Bekir Bozdag in relation to rents could increase rents even more. Inflation and the cost of living cannot be prevented due to the policies of the government in Turkey. According to the house price index published by the Central Bank (MB), the annual increase in house prices in March was 110 percent. Four ministries had convened to stop this increase in rents.
Eventually, Justice Minister Bekir Bozdag has announced that the increase in lease agreements to be renewed until July 1, 2023 will not exceed 25 percent of the previous year.
On the other hand, the rent increase rate, which was determined based on the 12-month average of inflation (CPI) figures, was 39.33 percent for June.
In such an environment, economists have strongly criticized this regulation which they think focuses more on the results than on the causes.
A former chief economist of the Central Bank ”It is not surprising that the Ministry of Justice is taking on the fight against inflation in a world where the Central Bank hopes to reduce inflation through global peace”, criticizing the announcement of the regulation by the minister of justice.
