VS Partners’ Q2 2024 Turkiye Real Estate Marker Figures research report is published!

Our research report includes the latest data and our market evaluations regarding the retail, office, logistics, hotel, and residential markets, along with the real estate investment market. Our key findings are as follows:

The easing of tight monetary policies in developed countries may accelerate capital flows to Turkiye in the medium term.

Total foreign investment inflows to Turkiye accounted for 5.9 billion USD in the first seven months of 2024, with a 0.4% yoy rise compared to the same period of the previous year. Commercial real estate prime yields recorded at 8.00% for shopping centres, 6.50% for high-street shops, 7.50% for offices, and 8.50% for logistics assets as of Q2 2024.

The momentum of retail sales volume is softening due to measures taken to limit spending appetite.

As of H1 2024, the existing shopping centre supply is at 14.2 million sq m across 456 centres in Turkiye. With approximately 82,000 sq m leasable area, a total of three shopping centre projects entered the retail market in H1 2024. The retail categories recording the highest turnover growth are women wear, lingerie and swimwear and cosmetics, respectively.

Prime office rents pushed back to the record level of 45 USD/m²/month.

The existing Grade-A office supply in Istanbul recorded at 6.6 million sq m GLA, while 788 thousand sq m is underconstruction. While Istanbul CBD regions vacancy rate is recorded at 5.4%, the majority of the Grade-A buildings located in the Ataşehir and Kozyatağı regions reached full occupancy.

After a quiet first quarter, the volume of logistics warehouse leasing transactions more than tripled with the conclusion of ongoing negotiations.

While the total existing logistics supply in the Marmara region, including the Istanbul and Kocaeli submarkets, was recorded at approximately 11.3 million sq m as of H1 2024, TRY-based prime logistics rent rose to 300 per sq m per month, an 50% yoy rise. 

The momentum of tourist inflows into Turkiye remained solid, with a 13.2% yoy increase in H1 2024.

​In H1 2024, a total of 25.1 million visitors visited Türkiye, with a 13.2% increase compared to the previous year and a 29.4% rise compared to 2019. While tourism revenues reached 23.7 billion USD, with a 9.3% yoy rise, average expenditure per capita decreased by 3.4% yoy and recorded at 942 USD.

Rising interest rates, escalating sales prices, and increasing construction costs continue to exert pressure on residential demand, creating significant challenges in the residential market.

While the total number of residential units receiving construction permits decreased by 3.2% yoy in the first half of 2024, the total number of residential units receiving occupancy permits increased by 10.2% in Turkiye. While the total residential sales numbers decreased by 3.7% yoy compared to the same period of the previous year, mortgaged sales dropped by 57.7% yoy due to the high interest rates.