The highest rate of office occupancy in the last 10 years has been reached in Istanbul

As of June 2023, the general supply in the Istanbul office market was 6.46 million square meters.

Levent was one of the regions with the highest primary office rents per square meter across the country, with 765 liras, followed by the Esentepe-Gayrettepe region with 516 liras. The rent amount was 455 TL in Maslak and Anatolian Side, and 268 TL in İzmir and Ankara.

On the other hand, as of June, the occupancy rate of the offices in Istanbul reached 84.9 percent, the highest rate of the last 10 years. It is foreseen that the rising demand and the decrease in vacancy rates will continue in the upcoming period and the upward movement on primary rents will maintain its continuity.

Office supply of 1.5 million square meters from Istanbul Finance Center

It will contribute to the office stock of the Istanbul Finance Center, whose banks phase was opened on April 7 with the participation of President Recep Tayyip Erdoğan.

Accordingly, the relevant units of Vakıfbank, Ziraat Bank and Halk Bank became operational in the globally important Istanbul Finance Center. It is expected that the other stages will be completed within this year and approximately 1.5 million square meters of supply will be added to the market. About 50 percent of this supply will be used by public banks and public institutions.

Abdi İpekçi Street is at the top again after 13 years

Considering the store rents on the main streets of Istanbul, the high demand for these streets also increased the rents. High demand for streets and occupancy rates have resulted in high primary rents.

As of June 2023, Abdi İpekçi was the most expensive street in Istanbul with a monthly rent of 250 dollars per square meter, followed by İstiklal Caddesi with 220 dollars. Thus, Istiklal Street, which has the title of the most expensive street since 2010, left its top spot to Abdi İpekçi Street.

The square meter rents of the main street stores were 4 thousand 545 liras in Istanbul, 1960 liras in Ankara and 1860 liras in Izmir.

Number of shopping malls increased to 448

While Piyalepaşa AVM, Lotus Nişantaşı AVM and Wins Town AVM were opened in the first half of the year, the total supply increased to 14 million square meters with 448 AVMs.

High occupancy rates were observed in the January-June period due to the high demand in streets and shopping centers. However, despite the limited supply, the brands continued to pursue their growth strategies.

While it was seen that international retail brands increased their cooperation in Turkey, Turkish companies continued to open their stores.

Western European companies plan to increase supply from Turkey

According to research, low costs, proximity, having free and open trade networks with Europe, and the fact that production has started to move to nearby coasts, especially after the COVID-19 outbreak, encourage foreign investors to produce in Turkey.

On the other hand, Mitsubishi continues its efforts to double its current production in Manisa. The “Mitsubishi Colt”, which will be showcased with its new model in the last quarter of this year, will also be produced at OYAK Renault’s facilities in Bursa.

Ford, Koç Holding and LG Energy Solution have also agreed to establish the battery factory, which will be located in the Ankara Organized Industrial Zone and is aimed to be the largest electric battery plant in Europe when completed.

Turkey, on the other hand, continues its investments within the scope of the 2053 Transportation Vision in order to develop the logistics infrastructure, which is important for these investments.

Türkiye is on the radar of many foreign electric vehicle manufacturers

Recently, electrification has gained momentum in the automotive sector in Turkey. The news that the reduced special consumption tax (SCT) rate applied to electric cars will be increased has put Turkey on the radar of many foreign electric vehicle manufacturers.

Opel has announced that it wants to grow in the Turkish market and take a leading role in the electrification transformation. The big Chinese automotive company BYD (Build Your Dreams) has taken a step to enter the Turkish market.

Toyota Automobile Industry Turkey announced that it will manufacture the new Toyota C-HR model, Turkey’s first rechargeable hybrid car, at its Sakarya facilities. Battery systems manufacturer Siro has announced that it will begin work on building its battery development and production facility, which is targeted for completion in 2024. The report also included information on the charging stations that Togg, Ispark and Tesla are planning to establish in Turkey.

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