Istanbul Office MarketView Q2 2022

August 19, 2022

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With the pandemic's impacts lessening and the normalization process taking place, the office market remained active in the second quarter. The market's activity has led to a continued decline in vacancy rates.

Despite the fact that office leasing agreements are signed in Turkish Lira, rising inflation rates have forced landlords to set rentals in US Dollars in order to keep rents in line with the actual FX rates.

There are no upcoming new office constructions and projects due to the increasing construction costs and the lack of sufficient land stock, as well as the oversupply that has been going on for many years. Apart from the Istanbul Finance Center, there is now no office stock that has to be completed and given that the Istanbul Finance Center will be leased out, it is feasible to argue that the sale possibilities for Class A offices have shrunk significantly.