For decades, Istanbul has attracted property investors drawn by its strategic location, cultural importance and dynamic real estate market. Yet in recent years, a growing issue has started to reshape buyer sentiment across the city: the sharp rise in residential maintenance fees.
In some developments, monthly maintenance charges now approach — or even exceed — rental income levels. This has become a major concern for both homeowners and investors, particularly in large-scale residential compounds with extensive facilities and management structures.
As modern developments continue to reshape Istanbul’s skyline, operational costs have risen dramatically. What was once viewed as a relatively manageable expense is now becoming a major financial consideration when evaluating property for sale in Istanbul.
The Legal Perspective: Are These Fees Justified?
Under Turkish law, maintenance fees — officially referred to as advance payments for common expenses — are determined annually by the general assembly of property owners within a development.
These charges typically cover services such as:
- Security and reception services
- Cleaning and maintenance staff
- Landscaping and communal areas
- Swimming pools, gyms and social facilities
- Elevator servicing and technical infrastructure
- Parking and site-wide operational costs
Management companies argue that rising inflation, labour costs and utility expenses have made fee increases unavoidable, particularly in luxury developments with extensive amenities.
However, legal experts — including prominent property lawyer Mehmet Ali Hartavi — point to a lack of modern regulation governing how much maintenance fees can increase annually.
“The Condominium Law, which dates back to 1965, fails to address the realities of today’s large-scale residential projects,” Hartavi explains.
Each development effectively sets its own operational budget, with increases approved by a simple majority at annual general meetings. In practice, this often leaves dissenting owners with limited ability to challenge decisions.
Transparency Concerns and Allegations of Mismanagement
One of the most common complaints among homeowners is the lack of transparency surrounding how maintenance budgets are allocated.
Although Turkish law technically allows owners to request financial records from site management companies, obtaining meaningful oversight can be difficult in practice — especially within very large developments where coordination between owners is limited.
“The real problem is the lack of transparency,” says Hartavi. “Without a formal auditing process, many homeowners suspect that these budgets include unnecessary or inflated expenses.”
Some management structures operate with minimal independent oversight, leading to concerns regarding inefficiency, inflated procurement costs and, in certain cases, potential abuse.
In newer branded developments with hotel-style facilities, owners are increasingly questioning whether the long-term operational model remains financially sustainable.
Impact on Property Investment and Market Sentiment
Rising maintenance fees are already influencing investor behaviour across Istanbul’s property market.
Many buyers — particularly foreign investors — now place far greater emphasis on long-term operational costs when evaluating apartments for sale in Istanbul.
In some luxury compounds, annual maintenance charges can amount to thousands of dollars per year. This has started to impact:
- Rental yield calculations
- Net investor returns
- Affordability for long-term ownership
- Resale attractiveness
- Tenant demand in certain projects
Some landlords now find themselves under pressure because rental increases cannot always keep pace with rapidly rising operational costs.
This imbalance is causing some investors to shift focus towards:
- Lower-density developments
- Boutique residential buildings
- Projects with fewer communal facilities
- Areas with lower operational overheads
Developments with excessive maintenance fees may increasingly face resistance from both tenants and resale buyers.
A Growing Issue for Istanbul’s New-Build Market
The issue is particularly relevant in districts dominated by large modern compounds such as Başakşehir, Ataşehir, Beylikdüzü, Kağıthane and parts of the Basin Express corridor.
While these projects often offer extensive amenities and newer earthquake-compliant construction, buyers are becoming more cautious about the long-term cost of ownership.
For many investors, the focus is shifting away from headline facilities and towards sustainable operational management.
Calls for Reform
As concerns continue to grow, calls for legislative reform are becoming louder among homeowners, lawyers and property professionals.
Suggested reforms include:
- Caps on annual maintenance fee increases
- Mandatory independent audits
- Greater transparency requirements
- Stronger owner oversight rights
- Modernisation of the Condominium Law
Until clearer regulation is introduced, Istanbul property owners are likely to face increasing scrutiny over the true long-term cost of apartment ownership in modern residential compounds.
Buying Property in Istanbul?
Maintenance costs, management structures and long-term operating expenses are becoming increasingly important when evaluating Istanbul real estate investments. Pera Property can help you identify projects with stronger long-term sustainability and realistic ownership costs.
