TÜRKİYE MARKETBEAT Q3 2024
OFFICE MARKET OVERVIEW
Rising rent rates and limited supply continue to drive down demand
In the third quarter of 2024, the total office supply in the Istanbul market was recorded at 7.11 million sq. m, with total leasing transactions for the quarter amounting to 34,985 sq. m. Cumulative leasing transactions in 2024 reached 166,082 sq. m, marking a 19% decrease compared to the same period the previous year. Additionally, leasing agreements in this quarter were comprised of new leases at rates of 30.4% by area and 41.2% by transaction count.
RETAIL MARKET OVERVIEW
International retailersentering the Türkiye market
Prime rents on Istanbul’s high streets have stabilized at $250 per square meter, the highest in eight years. Demand from luxury and global brands remains strong but has slowed. Rent growth has come to an end for now due to limited supply, a stronger currency, high inflation, and softer demand.
INDUSTRIAL & LOGISTICS MARKET OVERVIEW
Grade A warehouse market trends
Despite a slowdown in demand growth for Grade A warehouses, prime rents continued to rise. In the third quarter, warehouse leasing activity reached 13,300 square meters, totaling 193,000 square meters for the year—a 16% increase in leased space despite a 46% drop in transaction numbers. Limited supply has drivena 31.25% increase in prime rents compared to the same period last year.
