The segment of construction and rental of retail and office space is experiencing a period of revival. The Turkish branch of the international analytical company JLL, JLL Turkey, has published a report on the topic «Prospects of the commercial real estate market».
So, by the end of the first half of 2022, there were 14 million square meters of shopping centers alone in the country (in 448 shopping malls). In total, 120,000 new square meters of leasable space in 5 shopping malls «entered the market» in the first half of the year.
At the construction stage there are about 882,000 square meters of leased space in 29 shopping malls. It is expected that by the end of 2024, the total supply volume will increase to 14.8 million square meters.
Most of them are located in Istanbul: according to statistics, this is 37%. Ankara is in second place (12%), Izmir is in third place (6%).
According to the JLL report, although the number of visitors to the shopping center in the first half of 2022 increased markedly compared to the same period in 2021, the indicators have not yet reached the «pre-pandemic» level (2019). Although in terms of turnover, everything is going well: in April and May, the monthly turnover of shopping centers exceeded the level of 2019, due to the fact that local residents were actively buying for the holidays.
In the first half of 2022, the rental rate in shopping centers was 70 euros/square meter, or 1050 Turkish lira per meter. It should be noted that compared to the same period in 2021, it increased by 50% at once.
As for offices, the current supply of Class A offices in Istanbul as of 2022 was 5.8 million square meters, the volume of the «office» offer under construction is now about 1.5 million square meters, and by the end of 2023, it is expected that the total supply of Class A offices will exceed an area of 7.3 million square meters.
Moreover, almost 90% of the new space will fall on the future project of the Istanbul International Financial Center in Atashehir: its construction is planned to be completed by the end of 2022. The building, by the way, will be the tallest in Europe.