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Growing office stock in Istanbul upsets competition!

In the third quarter of the year, the regulation of foreign exchange and the end of the sale was struck by regulation. While office-class rents in Istanbul fall by an average of 7%, ongoing office projects show that the office stock in Istanbul will continue to grow by 2021.

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

2014 third quarter results of the 201 Istanbul Office Market Overview ”report prepared by Propin were announced. The office market, in which almost all of the contracts are made in foreign exchange, was marked by a decree stating that leş real estate purchase-sale and rental contracts cannot be indexed in foreign currency or foreign exchange leş. Re-determination of the rental price among tenants and owners, and the bargaining of making payments from the Turkish Lira caused uncertainty in the sector. Many owners in the market adapted to the market conditions, and quickly updated their foreign currency rental rates to Turkish Lira. The uncertainty about the rental value of the Turkish Lira continues in some offices. The vacancy rates for Class A office buildings located in the Central Business District (CBD *), which has the most office stock in Istanbul, remained unchanged since the second quarter. Class A office rents decreased from 4% to 11% in comparison to the previous quarter.

"Office stock in Istanbul will grow by 2021"

According to the report prepared by Propin quarterly; By the end of the third quarter of 2018, the CBD had a 23% share in the CBD, 34% in the CBD, 19% in the CBD and 24% in the CBD, and in the Emerging Office District (Kağıthane, Bomonti-Piyalepaşa, Kartal-Maltepe, Batı Ataşehir). Propin Founding Partner Aydan Bozkurt stated that the opening of the offices has been postponed due to the market conditions in many of the office buildings whose construction has been completed. Boz The total stock in Zincirlikuyu-Esentepe-Gayrettepe recorded a growth of A class office stock in this quarter and exceeded the total stock of 500 thousand m2. In the coming quarters, we expect a stock increase in Zincirlikuyu, Esentepe, Gayrettepe and Levent regions in the CBD. In addition, we foresee a stock increase in out of CBD-Asia, where small-scale office projects continue. Adverse economic developments and declines in rents lead tenants to offer their owners offers of aggressive conditions. The ongoing construction continues to show that the office stock in Istanbul will continue to grow by 2021.

Office rents continue to fall in Istanbul.

Propin said that the A $ in the CBD offices in the third quarter of 2017 and the square meter prices in the third quarter of 2017 fell by 13% in the third quarter of 2018 to $ 21.8. The price decrease for Class B office buildings was $ 10.1, reaching 26%. The average square meter price of Class A offices dropped to $ 14.5 in Out of CBD-Europe and $ 14.8 in Asia.

Istanbul Office Market Overview 2018 Click to see all 3rd quarter report.

* Classification of Business Areas in Istanbul​

MIA: Merkezi İs Alanı (Levent, Etiler, Maslak, Zincirlikuyu-Esentepe-Gayrettepe, Besiktas- Balmumcu)
Out of MIA-European (Taksim-Nisantası, Sisli-Fulya-Otim, Airport)
Out of MIA-Asia(Kozyatagı, Altunizade, Kavacık, Umraniye) 

** Office Building Groups​

Class A Office Buildings: They are the buildings with the highest position, the highest rental value and the high quality tenant infrastructure and prestige. It has modern technical and mechanical infrastructure, fire safety, generator, car park area, above average service areas and professional building management.

Class B Office Buildings: with lower rent and sales value; If the building is new, the buildings are ordinary designs and if they are old, they are improved buildings to look better.

About Propin Real Estate Investment Consultancy
Propin, who specializes in danışmanlık office aracılık in commercial real estate sector, provides brokerage and consultancy services to office users, owners, investors and developers since 2005. Propin has been operating in major cities where the office market is developing, especially in Istanbul. Since 2008, Propin has been publishing the ün Istanbul Office Market Overview ler report in Turkish and English.