Turkey Real Estate Market Overview Half Year 2022

As a result of the increasing inflation, the pressure of the landlords on the tenants increased and there was a significant increase in the prime rents on a local currency basis in general in the CBD and other sub-markets. In addition, it was observed that rents, which remained low in dollar terms, increased in the office market in secondary locations. The Istanbul Financial Center Law, which regulates the management and operation of the Istanbul International Financial Center, the activities carried out there and the incentives, discounts, exceptions and exemptions for these activities, entered into force. It is foreseen that the project will be completed in 2022 and approximately 1.4 million sq. m of Office supply will enter the market. More than 50 percent of this supply will be occupied by public banks and financial institutions.

RECENT PERFORMANCE

10,00%

-30,00% -20,00% -10,00% 0,00% 10,00% 20,00% 30,00%

9,00%

Rental Growth (y/y)

8,00%

7,00%

Yields

6,00%

5,00%

Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22

Yield - Country Average Yield - Prime Rental Growth - Prime Rental Growth - Country Average

In the first half of the year, there were no significant investment transactions were recorded. Investment transactions are expected to accelerate in the medium and long term. Investment Focus

0 1000 2000 3000 4000 5000 6000 7000

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000

4.132

4.140

4.140

4.132

4.007

3.745

3.362

3.058

2.855

%24,03

2.313

23.6% 24.0% 24.6% 24.8%

%

21,50%

19%

16.6%

16.1%

Thousands

10.6%

2.327

2.327

2.327

2.327

2.173

2.045

1.759

1.620

1.269

1.019

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1

Asian Side Supply (sq. m)

European Side Supply (sq. m)

Prime Rent

Vacancy

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