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Rents in Turkey on the Way Up

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In a recently released survey by a top international real estate firm, Turkey has seen several prime business locations with rents rising substantially over the past year. Three locations in the country came in at the top of the list for increased rates, with two of these in the city of Istanbul, the country’s financial and business center. Recent development and investment in the city and country has led to an increased need for office space as well as living quarters for businesses from both local and international investors.

Cushman and Wakefield, a leading international real estate firm, has released its annual report on the cost of office space around the world for 203 major business centers. It lists London as having the most expensive office space in the world, a title it has held for several years. The fastest growth in rents in all locations goes to the three locations around Istanbul. The Levant District on the European side of the city saw the fastest growing rents in the world, rising 95% in the local currency throughout 2007. This district also is the most expensive in the whole country.

The next two locations were the central business district of Izmir, a popular holiday destination along the Aegean coast where rates rose 90% in 2007, and the Gayrettepe/Zincirlikuyu district of Istanbul, also on the European side, with rents rising 87% throughout the past year.

Rahsan Cebe, Managing Director of Cushman & Wakefield’s Alliance Partner in Turkey, P&D Real Estate Consultants, notes: “We are seeing an acute shortage of quality office space across Turkey’s main business locations which is unlikely to be reduced over the next two or three years. Demand, meanwhile, is being spurred by international as well as local companies as they expand in this relatively untapped market, with its 70 million-strong population and fast-growing economy.”

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