Turkey bucks the trend with bullish commercial property market

The first half of 2013 has seen Turkey’s commercial property market record strong growth and attract increasing investment, according to a report by international property consultancy Jones Lang LaSalle.

The investment market has gained significant liquidity with a few major transactions completed in the past six to eight months, said the report. Another key finding was that the retail market has been active in terms of new brand entries, and this is expected to continue with the opening of Zorlu Center, an award-winning mixed use development in Istanbul. Turkey’s growing population and increasing purchasing power are the major factors positively affecting retail demand prospects in the medium to long term, the report read.

Elsewhere, high quality office space delivered in the first half of 2013 has increased almost six-fold compared to the same period last year, and there is still strong development in the pipeline. And in the logistics market, occupier demand is active with leasing transaction volume expected to equal that of 2011 by the end of this year.

Istanbul’s hotel market recorded some major openings in the first half of the year, added the report, with more major developments expected to enter the market by the end of 2013.

“As of the second half of 2013, Turkey’s total shopping centre gross leasable area, comprising 336 shopping malls, is around 8.9 million square metres. This figure will rise to 12 million square metres with the completion of 88 new projects by 2016,” said Jones Lang LaSalle Turkey Chairman Avi Alkas.

Despite the economic slowdown all over Europe, Turkey recorded a relatively high economic growth among emerging countries in 2012. The Turkish economy showed some revival during Q1 2013 and recorded a GDP growth of 3 per cent. The IMF projects 3.4 per cent growth in Turkey’s GDP for 2013 as a whole.