The Central Bank of the Republic of Turkey (CBRT) announced the Commercial Real Estate Price Index data for the third quarter of the year. According to the data, the index nationwide increased by 6.8 percent compared to the previous quarter, while it increased by 44.1 percent in nominal terms compared to the same quarter of the previous year. In real terms, there was a decrease of 6.5 percent.
STORE AND OFFICE PRICES CONTINUE TO INCREASE
The shop price index increased by 6.5 percent compared to the previous quarter, while it increased by 45.2 percent in nominal terms on an annual basis. In real terms, it decreased by 5.8 percent. In the same period, the office price index increased by 8.5 percent on a quarterly basis. While the annual nominal increase in office prices was recorded as 38.4 percent, a decrease of 10.2 percent was observed in real terms.
ANNUAL RISE IN THREE MAJOR PROVINCES IS REMINDERFUL
The increase rates in commercial real estate prices in the three major cities were striking. Compared to the same quarter of the previous year, there was an increase of 32 percent in Istanbul, 55.6 percent in Ankara and 44.8 percent in Izmir.
“INVESTORS SHOULD ACT CAREFULLY”
Making evaluations on the subject, Varlık Gayrimenkul Founder Erhan Yılan stated that these increases in the commercial real estate market are directly affected by sectoral dynamics and economic conditions. Yılan said the following:
“In our country, commercial real estate investments reflect both the impact of economic fluctuations and show that the market maintains its vitality. However, nominal increases can be misleading; investors should consider real losses. The 55.6 percent increase in Ankara in particular is an indication of the city’s progress towards becoming a commercial center. Izmir is also on a similar upward trend. Istanbul, on the other hand, maintains its appeal as always, but high costs and inflation require investors to act more strategically.”
“INTEREST IN TRANSFORMATION PROJECTS WILL INCREASE”
Yılan stated that increasing office and shop prices will increase the interest in transformation projects in particular and made the following statements:
“The increase in office prices shows that office needs are back on the agenda as the business world returns to normal after the pandemic. However, at this point, there will be an increased tendency towards modern and energy efficient structures. This increases the importance of transformation projects.”
Yılan also emphasized the importance of regulatory policies and incentives for sustainable growth in the sector, saying, “Commercial real estate investments are one of the locomotives of the country’s economy. Long-term planning in this area will be in favor of both investors and users.”
