Excessive increases in residential service charges—one of the most debated issues in Turkey’s housing market—are now set to be reshaped through a new legislative proposal. As site and apartment fees have begun to rival rental prices, the Ministry of Environment, Urbanisation and Climate Change has drafted a reform aimed at regulating these increases. The proposal has been formally placed on the agenda of the Grand National Assembly of Turkey (TBMM).
The most notable provision in the bill is the introduction of a cap that ties annual service charge increases to the Consumer Price Index (CPI). If enacted, this change would mark a new era for millions of households.

A New Era for Service Charges: A CPI-Based Cap

According to the draft bill, site management boards would be prohibited from setting annual budget increases that exceed the official CPI rate.
The objective is to eliminate arbitrary hikes and establish a more predictable cost structure for residents.
Minister of Environment, Urbanisation and Climate Change Murat Kurum explained the rationale behind the proposal, noting:

“We receive a significant number of complaints regarding exorbitant service charges. We are implementing a regulation that addresses these concerns.”

What Does “Service Charges Cannot Exceed CPI” Mean in Practice?

If the bill is enacted in its current form:

• Annual service charge increases may not exceed the officially announced CPI rate.

• Site management boards will not be able to impose increases above CPI unilaterally.

• The condominium owners' general assembly must approve any increase beyond CPI, except in extraordinary circumstances.

This framework is expected to enhance predictability and prevent excessive increases, particularly in large residential complexes.

How Are Service Charge Increases Currently Determined?

As of today, the only legally binding framework governing service charge increases is the Condominium Law No. 634.
Under this law:

• The authority to determine service charge increases rests with the condominium owners’ general assembly.

• There is no statutory upper limit for service charge increases.

• Management cannot implement an increase without general assembly approval.

• Property owners who fail to pay service charges may face legal enforcement proceedings.

This legal framework remains in effect until the newly proposed bill is debated, approved, and published in the Official Gazette.