Long-term economic growth prospects in Turkey have been described as ‘bright’ by international property consultancy Cushman Wakefield, which added that the Turkish economy is expected to accelerate in 2015 after a slower 2014.
In a recent report on the first half of 2014, Cushman Wakefield also stated that the confidence and perception of the Turkish office market are both increasing, as is interest from both domestic and international investors. Gross take-up of office space is six per cent up on 2013, with 140,500 square metres occupied.
“Going forward, the Turkish office market, led by Istanbul, will continue to benefit from new pipeline projects, which will in turn increase availability in the highly sought after prime areas,” said the report.
The Ümraniye and Kağıthane districts were highlighted as continued alternatives for the Turkish office market - 15 per cent of all deals in the last two years occurred in the Ümraniye district. Similarly, the Kağıthane district stood out as one of the most emerging submarkets on the European side of Istanbul.
In the retail property sector, the Turkish Council of Shopping Centres Investor (AYD) reports that new retail provision was higher in the second quarter than in the previous three months and in May retail sales in shopping centres rose 6.8 per cent year-on-year. The most notable opening was Mall of Istanbul, one of the largest schemes in Istanbul and the whole of Turkey, housing domestic and international brand, in some cases their largest branches in the country.
Positive news in the commercial retail sector should benefit the residential property sector in Istanbul. Rising availability of quality office space as well as increased retail space should increase the desirability of Istanbul’s up-coming districts.