TÜRKİYE MARKETBEAT Q3 2025

Prime Office Rents Remain Elevated, Upward Trajectory Persists

- In the commercial real estate sector, Prime Office Rents were recorded at US$50/sqm in Q3 2025, representing an 11% year-on-year increase in USD terms.

- Concurrently, the TRY equivalent surged by 35% to ₺2,034/sqm, a notable increase that outpaced the September inflation rate of 33%.

- In the third quarter of 2025, the gradual introduction of the Istanbul Finance Center (IFC) to the market resulted in the addition of 40,766 sqm of new supply, elevating the total supply of the Istanbul office market to 7.21 million sqm.

Retail Sector Stabilizing Under Rental and Cost Pressure

- In the third quarter of 2025, pressures became pronounced in the retail sector on both the demand and cost fronts. Rising rents and constrained supply have limited the expansion plans of brands, particularly those operating in the middle and lower market segments, leading many to prioritize the retention of existing stores over opening new locations.

- According to AYD/Akademetre data, the Shopping Center Revenue Index in August 2025 rose by 33.8% year-over-year, marginally exceeding the month’s inflation rate of 32.95%.

- Based on TÜİK data, the calendar-adjusted retail sales volume increased by 12.2%, registering its lowest growth rate in recent months.

While High Costs Press Development, Rents Show Limited Increase

- According to available data, Grade A warehouse leasing activity in Istanbul and its environs recorded 78,900 sq. m of transactions in the third quarter of 2025, bringing the cumulative leasing volume for the first three quarters of the year to 199,848 sq. m.

- This dynamic resulted in a 5% annual increase in Istanbul's prime rent values in USD terms.