TÜRKİYE MARKETBEAT Q1 2026

Balancing process continues under the shadow of geopolitical risks and tight monetary policy

In the first quarter of 2026, increasing geopolitical tensions and rising energy prices heightened global uncertainty, while the Türkiye economy continued its balancing process under tight monetary policy and high inflation. During this period, a limited decline in inflation, a slowdown in growth, and a cautious monetary policy stance came to the fore. In the office market, prime rents increased by 11% compared to the same period of the previous year.

Prime office rent remains at a high level at US$50

In 2025, with the gradual launch of the Istanbul Finance Center, new supply was added to the office market, increasing total supply from 7.16 million sqm to 7.53 million sqm. In the first quarter of 2026, total supply in the office market remained stable compared to the previous quarter.

Limited supply and high costs drove brands to retain existing stores and focus on efficiency

In the first quarter of 2026, the retail sector was characterized by a supply-constrained environment. While limited supply and high costs persisted, brands remained cautious in new investment decisions, focusing on retaining existing stores and improving operational efficiency rather than expansion.

According to AYD/Akademetre data, in February 2026, the shopping center sales index per sqm increased by 22.8% year-on-year, remaining below the inflation rate of 31.53% for the same period and indicating a negative real performance.

Technological transformation in production comes to the forefront despite contraction in the sector

In the first quarter of 2026, tight monetary policy and financing challenges continued to weigh on the market, while a cautious outlook prevailed in the real sector. Despite rising costs, rent levels remained flat, limiting new investments, while movement within existing supply had a balancing effect. Large-scale companies shifted toward more efficient spaces, while financing pressures on SMEs persisted.

As of the first quarter of 2026, Grade A warehouse leasing activity recorded a sharp decline of 51% year-on-year, totaling 44,000 sqm.