New regulation to curb soaring housing dues

ANKARA

New regulations on residential site management and measures to curb arbitrary service charges have moved forward as Turkish lawmakers approved the first five articles of a broader legislative package.

The move comes as monthly dues in Istanbul have surged dramatically, ranging from around 15,000 Turkish Liras ($331) to as high as 70,000 liras ($1550) in some upscale developments — sometimes exceeding twice the average rent for a standard apartment.

According to a study, the highest fees are concentrated in central and high-end districts such as Beşiktaş, Şişli, Sarıyer, Üsküdar, Beykoz and Kadıköy.

The newly approved legislation introduces stricter oversight on how these fees are determined.

Amendments to the Condominium Law of Türkiye will require that advance payments collected by building or site managers must be approved by the assembly of property owners, effectively removing unilateral decision-making power from managers.

Under the new framework, the annual operating budget — referred to as the “management project” — must be presented to and approved by the general assembly of property owners.

If no approved plan exists, managers will be required to prepare a temporary budget and submit it for approval within three months. This temporary plan must be formally communicated to property owners or occupants.

The bill also introduces a cap on fee increases.

Any interim dues set before the approval of a new management plan cannot exceed the official revaluation rate from the previous year, helping to limit excessive hikes.