Market Size of Commercial Real Estate Industry in Turkey
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 9.74 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Turkey Commercial Real Estate Market Analysis
The commercial real estate market of Turkey is expected to grow at a CAGR of 9.74% during the forecast period of 2022-2027.
With annual GDP growth in 2020 recorded as 1.8%, Turkey has become one of the few economies recording growth against the backdrop of the Covid-19 pandemic.
This positive climate continued into 2021; the Turkish economy exceeded expectations by growing by 7.4% in Q1 2021, 22.0% in Q2 2021, and 7.4% in Q3 2021 annually. While base effects lifted recorded growth rates in annual terms, the expansion in the Turkish economy was mainly driven by household spending.
The existing shopping center supply reached 14 million sq m in 453 centers in Turkey as of 2021 year-end. Thanks to the rebound in retailer leasing activities, shopping center openings accelerated rapidly, especially in October 2021. Currently, approximately 883k sq m GLA in 28 centers is under construction, adding up to c. 14.9 million sq m supply by the end of 2024.
In the office sector, while the existing Grade-A office supply in Istanbul reached 5.8 million sq m GLA as of year-end 2021, there is circa 1.6 million sq m office supply under construction, and it is expected that the total Grade-A office supply will outpace 7.4 million sq m GLA by the end of 2023. The majority of the future supply consists of the Istanbul International Finance Centre project located in Ataşehir, which is planned to be completed by the end of 2022.
For the hospitality sector, during H2 2021, the hotel market benefited from the ease in restrictions and the reopening of international flights, as well as from postponed holidays, as expected. The rebound in the hotel sector was especially vibrant in the summer season, primarily for the riviera region of Turkey.
