The increased demand for office space has led to higher rents. This happened because the supply did not keep up with the increasing demand for office and retail spaces in 2023.
According to Emlakkulisi, citing a recent report by Cushman&Wakefield on the real estate market outlook for the second half of 2023, office occupancy in Turkey has increased significantly after the pandemic reaching the highest level in nine years.
In total, rental rates rose by 8.6% in dollar terms in Levent. This is not the highest figure: it was 12% in Esentepe-Gayrettepe-Zincirlikuyu and 20% in Maslak. It is in dollars, not in lira.
Returning to the offices: after the launch of the first "queues" of the Istanbul International Financial Centre (IFM), the total supply of the Istanbul office market has increased to 7.14 million sq. m in 2023. The office market was lively. Nevertheless, there is a shortage of space, as the largest financial institutions and corporations have occupied a significant number of IFM offices.
However, the Istanbul International Financial Centre is expected to open, which will offer 1.5 million square meters. An increase in leased space will significantly simplify the situation, analysts believe.
Warehouses are in high demand as well: the rental of warehouse space is highest in the last 15 years. Since the second half of 2023, which accounted for 66% of warehouse lease transactions in 12 months, the total volume of deals for the year covered 225,000 sq. m of leased space. Moreover, the growth of the so-called primary lease (when a contract is concluded for the first time) amounted to 13.3% compared to last year, due to the limited supply of the highest-quality storage spaces and higher demand for indoor premises.
It was reported in late January that a mega-complex with housing, offices and a shopping mall would appear in the Turkish capital.