Istanbul Office MarketView Q4 2023

Despite high rental costs and inflation, the Istanbul office market had a successful year in 2023. The demand for earthquake-resistant offices increased due to security concerns following some earthquakes in Kahramanmaraş. This played a significant role in leasing activities. However, despite the addition of new office spaces outside the Istanbul Financial Center, rental rates remained consistently high throughout the year due to a decrease in market vacancies.

Currency exchange rates and inflationary conditions caused the listed prices of office spaces to increase in USD. The average rental rates for Class A offices in the CBD, including the Istanbul Tower, saw a remarkable 20.00% increase in 2023. Vacancy rates dropped to the lowest levels in a decade, with CBD at just 4.75% (19.00% including Istanbul Tower).