TÜRKİYE REAL ESTATE MARKET OVERVIEW HALF YEAR 2024

We are pleased to share with you our report.

The purpose of this report is to provide you with real market information combined with the views of our global and local experts. This report analyzes the market from investor and occupier perspectives in the following areas.

ECONOMY OVERVIEW

In addition to developments in the global economy, the high exchange rate and inflation in our country have led to high policy interest rates. The increase of the policy interest rate from 45% to 50% before the March 31 General Elections signaled that Turkey would continue to implement a tight monetary policy.

OFFICE MARKET OVERVIEW

In the second quarter of 2024, prime rents remained at US$42, showing a 13.5% increase in US$ terms compared to the same quarter of the previous year. Prime rents, which have risen to their highest level in the last eight years, were last recorded at this level in 2016.

RETAIL MARKET OVERVIEW

In the first half of the year, prime rents on Istanbul’s high street remained stable compared to the same quarter of the previous year. Despite the demand, the significant decrease in vacancy rates and the lack of new supply have kept the prime rents on highstreets and shopping centers at the same level as previous year.

INDUSTRIAL & LOGISTICS MARKET OVERVIEW

Accordingto current data, warehouse leasing activities amounted to 90,000 sq. m in the first quarter and 89.700 sq. m in the second quarter, totaling 179,700 sq. m in the first half of the year. As in recent periods, the supply of qualified warehouses remains limited, and the demand for warehouses with large enclosed areas remains high among occupiers.

RESIDENTIAL MARKET OVERVIEW

Due to high housing prices and rising mortgage interest rates, a decrease in housing sales volumes has been recorded. Housing sales in Türkiye in the first half of 2024 decreased by 3.7% compared to the same period of the previous year, totaling 545,074 units, thus falling below previous year’s figures.



TURKEY-REAL-ESTATE-MARKET-OVERVIEW-HALF-YEAR-2024.pdf