The real estate industry in Turkey has undergone a variety of shifts in recent months, and the following enumerates a few of them.

1. 6 Major Changes in the Turkish
Real Estate Market
Ehsan Bayat

2.  The northernmost country in the Middle East, Turkey borders the Mediterranean Sea and the Black
Sea. Turkey offers a wealth of real estate opportunities for both investors and buyers in all parts of
the world. Collier International Turkey, a leading real estate firm in the area, conducts regular
research on industry activity and compiles a detailed, semiannual report. Each survey, which
includes details about previous and ongoing trends, features data-generated projections for future
market behavior. The following list connects and compares the key points addressed in the firm’s
most recent reports, published at the end of 2015 and the beginning of 2016:

3. The Turkish Construction Sector
 In the early months of 2015, the number of property sales in Turkey increased by 21 percent, and
sales in the capital city of Istanbul rose by 15 percent, respectively. The authors noted, however,
that these numbers could be more of a reflection of potential deals and agreements reached in
2014, since the data only accounts for completed contracts.
 Analysis from the 2016 document supports this observation and further illustrates that the influence
of construction on GDP in the country decreased in 2015, following two strong years of growth.
Notwithstanding, the report suggests that potential growth still exists, and that it can occur if
developers focus their efforts on urban development and infrastructure for commercial and retail
real estate.

4. Class-A Buildings in Istanbul
 The staff at Collier International divided the capital city into nine separate districts for
convenience in taking measurements. Upon completion of the analysis, they found that the total
stock of Class-A buildings had risen early by 6.5 percent in 2015. The average rent remained
constant, with variation across districts, but the overall vacancy rate notably increased during the
first half of the year, an expected shift given the rise in available real estate.
 In Turkey Real Estate Review 2016, the trend of increased office space continued, although at a
slower rate of 3.2 percent. The report also revealed that more than 1 million square meters of
real estate is slated for completion within two years. One leader in creating Class-A offices is the
Istanbul International Finance Center, which comprises more than half of the corporate real
estate market in the city.

5. Industrial Building in the Greater Istanbul Area
 Measurements made for the industrial sector of Istanbul took into consideration properties in and
around the city. As of the halfway point in 2015, more than 80 percent of the projected industrial
stock was completed and available for sale or lease, and 87 percent of these properties had owners
or tenants. Despite the remaining 13 percent of vacancies, rent and sales prices increased due to
low supply in the area.
 The 2016 report showed the same figures for the status of completion, development, and planning.
However, a decline of between 2 and 5 percent has occurred in the number of renters as a result of
the changes in pricing. The Turkish Lira has decreased in value, and as a result many industrial
developers are pricing their real estate in U.S currency. Various projects in the area, including two
highway developments, have gained the support of investors.

6. Hotel and Tourism Statistics
 Compared with the rest of the country, Istanbul experienced a 7 percent increase in visitors through
the early months of 2015. Roughly 35 percent of all tourism occurred in the capital city. Of these
guests, the majority came from Germany, Iran, and the United States. While more rooms were
booked during these months, there was a reduction in room rates.
 A report subsequently released by Collier International Turkey revealed that Istanbul finished the
year with an increase in tourism of about 6 percent. In addition, the researchers indicated that the
trend of visitors coming from Asia and other parts of the world continued, while the number of
visitors coming from neighboring countries in the Middle East diminished. Currency, once again,
appears to be a leading factor in this shift in the landscape.

7. The Growth of Shopping Centers
 As a standard for comparison, the staff at Colliers International set the qualifications for shopping
centers as those with a minimum of 25 stores and 5,000 square meters available for lease.
According to these descriptions, Turkey featured 331 such facilities at the completion of the third
quarter of 2015. The number increased to 444 by Q1 of 2016, and an additional 35 are scheduled
for completion by the end of the year.

8. Competition for Residential Properties
 Prices for residential real estate in Turkey have nearly doubled since 2010, and in Istanbul prices has
increased by as much as 140 percent. The influx has occurred while prices for the actual
construction of homes, apartments, and villas have stayed consistent.
 Additionally, the report outlines several developments for consideration, all within price categories
for each buyer or investor. A few of these include urban projects in Haliç-Kağıthane, Zeytinburnu,
and Basin Ekspres Road.