VS Partners’ Q3 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, and logistics markets, along with the real estate investment market. Our key findings are as follows:

Real Estate Investment Market

• While FDI inflows into Turkey grew by 7.6% yoy in the first nine months of the year, reaching 7.7 billion USD, FDI inflows into the real estate continued to decline, registering a 23.8% yoy fall.
• Real estate investment activity remained subdued as investors compared return rates in light of elevated interest rates. Potential rate cuts are anticipated to accelerate investment appetite in the upcoming period.

Retail Market

• Prime shopping center rents remained stable compared to previous quarter for the first time in two years at 120 EUR per sqm per month, reflecting a 26.3% year-on-year growth.
• During the first ten months of 2024, shopping center openings accelerated, with eight new shopping center projects entering the market, offering a total leasable area of approximately 240,830 sqm.

Office Market

• The Istanbul office market continued to face supply constraints and sustained firm demand, with vacancy rates declining to below 5% in the Central Business District (CBD).
• Following six consecutive quarters of growth and reaching a record high, prime office rents remained at 45 USD/sqm/month as of Q3 2024. However, the upward trend is anticipated to continue, driven by the very limited availability in the Istanbul office market.

Logistics Market

• New leasing activities remained strong despite the limited available supply with the 49% yoy rise in the take-up volume as of Q3 2024 in Istanbul and Kocaeli regions.Leasing activity was predominantly concentrated in the Kocaeli region, with 3PL companies leading transactions across both Kocaeli and Istanbul.
• The logistics market continues to face supply-demand imbalances, pushing prime logistics warehouse rents upward. High construction and land costs persist as significant challenges for development activities.