Turkey Real Estate Market Overview Half Year 2022

Outlook

The demand for warehouses has gained momentum with the increase in producers’ storage needs together with the rising inflation. In addition, the increasing construction costs and the gradual increase in prime rents push the users to complete the contract processes beforehand. In addition, a 20% increase was recorded in prime rents in this quarter compared to the previous quarter. In this context, it is foreseen that prime rents will increase in the short-medium term in the face of supply shortages and increasing demand. After the start of the Russia-Ukraine war, many manufacturers in this region took Turkey on their radar especially since the export volumes of these companies are high, their demand for logistics and industrial areas in free zones is higher than in other regions. The demand for industry and logistics areas in the Thrace region, which has the advantage of accessing Europe in terms of location for land logistics, has gained momentum and this mobility is expected to increase in the medium term. The 1915 Çanakkale Bridge, which was opened on March 18 and also forms an important part of the highway ring being built to the Marmara Region; It is expected to relieve the Marmara region, which has no other alternative other than the bridges in Istanbul on the trade line from Anatolia to Europe. With the bridge, which offers great advantages in terms of both logistics and commercial mobility, the demand for the surrounding logistics and industrial areas is expected to increase. The search for solutions to the disruptions in the supply chain all over the world during the pandemic period is expected to create an opportunity for international investors who want to take advantage of Turkey’s advantageous geopolitical position in the long run. However, in the first quarter of the year, the US world automotive giant Ford and Volkswagen announced that they will produce Kocaeli for their new commercial vehicle, which they will launch in cooperation with. In the first quarter of the year, the Chinese electronics and smartphone manufacturer Xiaomi and its partner Salcomp opened the factory in Avcilar, Istanbul, where it will produce. In addition, national companies operating in the fields of insulation and paper-cement are getting ready to make production in various provinces of Anatolia by increasing their investments. Habas is planning to establish the World’s largest air separation plant in Bilecik. Qua Granite, on the other hand, plans to gradually complete three new production lines, which it started in 2020, 2021 and 2022 to meet the increasing demand. In addition, Chery, a Chinese automotive brand in the automotive industry, announced that it plans to enter the Turkish market in the last quarter of 2022. Investments in industry and logistics are expected to continue to improve in the following periods of the year.

NORTH MARMARA LOGISTIC SUBMARKETS - PRIME RENTS

100 120

0 20 40 60 80

(₺/sq. m/month)

Corlu - Cerkezköy

Catalca - Silivri

Esenyurt - Hadimköy

Ikitelli - Yenibosna

Dudullu Kartal - Samandİra

Tuzla - Gebze

Dilovasi

CUSHMAN & WAKEFIELD | 21