Commercial Real Estate - Turkey

Turkey

Turkey's Commercial Real Estate market market is expected to grow significantly in the coming years.
According to projections, the market value is set to reach a staggering US$1.00tn by 2024.
This growth is anticipated to continue at a steady pace, with an annual growth rate (CAGR 2024-2028) of 4.22%.
As a result, the market volume is estimated to reach an impressive US$1.18tn by 2028.
In a global comparison, it is noteworthy that the United States will generate the highest value in the Real Estate sector, with an estimated value of US$25,370.00bn in 2024.
However, it is important to highlight Turkey's significant potential and the promising prospects for its Commercial Real Estate market market.
Investors in Turkey's commercial real estate market are increasingly focused on the growing demand for office space in Istanbul's central business district.

Key regions: United Kingdom, China, Asia, France, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Commercial Real Estate market in Turkey has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the Commercial Real Estate market in Turkey are increasingly looking for modern and well-equipped office spaces that can cater to their specific needs. They are also seeking locations that offer convenient access to transportation, amenities, and a vibrant business environment. Additionally, there is a growing demand for flexible office spaces and co-working spaces, as more businesses are adopting remote working policies and seeking cost-effective solutions.

Trends in the market: One of the key trends in the Commercial Real Estate market in Turkey is the increasing popularity of mixed-use developments. These developments combine residential, commercial, and retail spaces in a single project, creating vibrant and integrated communities. This trend is driven by the desire for convenience and efficiency, as well as the need to optimize land use in urban areas. Another trend in the market is the growing interest in sustainable and green buildings. Customers are increasingly conscious of the environmental impact of their operations and are seeking buildings that are energy-efficient and environmentally friendly. This trend is also supported by government initiatives and incentives to promote sustainable development.

Local special circumstances: Turkey's strategic location between Europe and Asia, as well as its strong economic growth, make it an attractive destination for businesses. Istanbul, in particular, is a major commercial hub and has a high demand for office spaces. The city's unique blend of historical and modern architecture adds to its appeal, attracting both local and international businesses.

Underlying macroeconomic factors: Turkey's strong economic growth and increasing urbanization have contributed to the development of the Commercial Real Estate market. The country's growing middle class and rising disposable incomes have led to increased consumer spending and demand for retail spaces. Additionally, the government's focus on infrastructure development and urban regeneration projects has created opportunities for commercial real estate development. In conclusion, the Commercial Real Estate market in Turkey is experiencing growth and development due to customer preferences for modern and well-equipped office spaces, the trend towards mixed-use developments, the growing interest in sustainable buildings, and the country's strong economic growth and urbanization. The unique characteristics of Istanbul, as a major commercial hub, further contribute to the market's attractiveness.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.