For decades, Istanbul has been a magnet for property investors, drawn by its rich history, strategic location, and vibrant real estate market. Yet, in recent years, a troubling trend has emerged—one that threatens to dampen enthusiasm and place undue financial pressure on homeowners. The steep rise in maintenance fees, in some cases surpassing rental costs, has become a significant concern across the city.
As modern developments, particularly large-scale residential complexes, continue to reshape Istanbul’s skyline, their operational costs have skyrocketed. Once considered a manageable expense, maintenance fees are now demanding greater scrutiny from property owners, with some questioning their legality and fairness.
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 given development. These fees typically cover essential services such as security, cleaning, landscaping, and the upkeep of communal facilities like swimming pools, elevators, and parking areas. However, with inflation and rising labour costs, many site managements argue that these increases are inevitable.
Legal experts, including prominent property lawyer Mehmet Ali Hartavi, point to a lack of clear 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 site sets its own operational budget, and increases are approved by a simple majority at general meetings, often leaving dissenting owners with little recourse.”
Transparency Concerns and Allegations of Mismanagement
One of the primary grievances among property owners is the opacity surrounding how these fees are allocated. While Turkish law allows owners to request financial records from site management, such oversight often requires a majority vote from fellow owners—an impractical hurdle in many cases.
“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 companies operate with minimal oversight, leading to financial inefficiencies and, in worst cases, outright exploitation.”
Impact on Property Investment and Market Sentiment
The soaring costs of maintenance fees are already influencing buyer sentiment, particularly among foreign investors. “Many prospective buyers are now factoring in long-term maintenance expenses when evaluating a property,” notes a leading Istanbul-based real estate consultant. “In some cases, high fees are deterring purchases altogether, especially in luxury developments where they can exceed thousands of dollars per year.”
Moreover, the impact extends to rental yields. In certain districts, landlords find themselves in a precarious position—unable to raise rents sufficiently to offset rising maintenance fees due to rental cap regulations. This imbalance is prompting some investors to reconsider their holdings or shift their focus to properties with lower operational costs.
A Call for Reform
While site management companies defend the necessity of these increases, there is growing demand for legislative reform. Calls for a cap on annual maintenance fee hikes, mandatory audits, and greater regulatory oversight are gaining traction among property owners and legal professionals alike.
Until such measures are introduced, Istanbul’s homeowners must navigate an increasingly costly landscape—one where the very privilege of property ownership is overshadowed by spiralling maintenance fees.
