TÜRKİYE REAL ESTATE MARKET OVERVIEW YEAR END 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 2024, central banks globally tightened monetary policies to restrict inflation, achieving progress by mid-year.

OFFICE MARKET OVERVIEW

As companies gradually reassessed hybrid work strategies, the trend toward returning to offices gained modest momentum. Despite this, demand for Grade A offices and spaces in central business districts (CBD) remained strong.

RETAIL MARKET OVERVIEW

Rents on high streets remained at US$250/sq.m/month, the highest level in the past eight years. Although the rate of increase in prime rents on Istanbul’s high streets slowed down, rents remained stable at US$250 per sq.m in the last quarter of the year due to high demand and limited supply. In 2024, despite the strong interest from luxury and international brands and the entry of new brands into the market, there has been a noticeable slowdown in the demand growth rate compared to previous years.

INDUSTRIAL & LOGISTICS MARKET OVERVIEW

The effects of the global economic slowdown in 2024 were also felt in the Turkish economy, with fluctuations in energy prices and rising import costs making it difficult to combat inflation. Furthermore, the rise in tax rates on imported goods aimed at reducing import dependency in Türkiye has led to higher import costs.

RESIDENTIAL MARKET OVERVIEW

In 2024, high financing costs, a decrease in real purchasing power, and an increase in the number of houses for sale led to a real decline in housing prices. The decline in housing prices and the removal of the 25% cap on rent increases were significant factors that boosted housing sales, especially non-mortgage sales.

STUDENT HOUSING OVERVIEW

Despite the increase in capacity in the 2023-2024 academic year, dormitory capacity across Türkiye remains insufficient to meet the demand. Although capacity has increased with new investments, this increase is not enough to meet the accommodation needs of students. High rental costs and living expenses have deepened the housing problem, and the limited dormitory options pose a significant challenge for students, especially in major cities.

Publication Date: 14/02/2025
Updated Date: 14/02/2025