TÜRKİYE MARKETBEAT HALF YEAR 2025

Historic Peak in Istanbul Grade A Office Market: Prime Rent Reaches USD 46/m² for the First Time

- In Q2 2024, prime office rents were recorded at USD 46/m², marking a 10% increase in dollar terms compared to the same quarter of the previous year.

- Meanwhile, new leasing transactions declined by 30% in terms of square meters year-on-year.

- This trend is largely attributed to tenants opting to renew contracts with existing landlords instead of relocating, mainly due to elevated rent levels.

Prime Retail Rents Remain Flat

- On high streets, prime retail rents in Istanbul reached a peak of US$ 250/m² per month as of June, followed by Ankara at US$ 105 and Izmir at US$ 100.

- No new shopping mall investments were recorded in the first half of the year, with total supply remaining stable at 455 malls and 14.11 million m².

- The Turkish retail market continued to attract international brands, particularly in the luxury fashion segment, indicating sustained activity.

Industrial & Logistics Leasing Volume Drops by 33%

- In Istanbul, prime rents increased by 10% due to strong demand and limited supply, reaching US$ 11/m².

- However, compared to the same period last year, leasing activity declined by 33%.

Demand for Residential Properties Increased in H1 2025

- Despite a rise in construction activity in the first half of 2025, ongoing cost pressures prevented housing supply from keeping pace with demand.

- While nominal housing prices continued to rise, high interest rates kept the share of mortgage-backed transactions relatively low.