Boston, MA -- (SBWIRE) -- 02/06/2014 -- Turkey's real estate market is, on the whole, following a positive growth trajectory, with retail the outperformer. Industrial is the Achilles heel of the sector, lagging behind both retail and office space in terms of rent, yields and construction growth. However, with export growth anticipated to improve over the forecast period, we could begin to see this sub-segment in a positive light.
With a focus on the two principal cities of Istanbul and Ankara, this report covers the rental market's performance in terms of rates and yields and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of the country's long-term domestic demand credentials.
Positive economic fundamentals and construction growth are underpinning our positive outlook for Turkey's Real Estate sector over the forecast period, with annual average GDP growth of 4.4% expected over the 2013-2017 period. A penchant for Western shopping trends and brands is driving large retail developments across the country, particularly in Ankara and Istanbul. This is attracting wealthy foreign players, such as Apple and Taurus Investment, which in turn is buoying rental rates and garnering attention to the Turkish retail segment.
View Full Report Details and Table of Contents
Office space is also faring well, with around 800,000 m2 currently being developed in Istanbul. This is sorely needed, as Istanbul's Central Business District (CBD) has a vacancy rate of less than 1.0%, with supply insufficient to meet demand in this prime real estate space. Both office and retail will provide healthy rental rates and yields over the forecast period to 2017.
Industrial will fare less well, even after a few rocky years. That said, export growth is on the cards, especially with regards to textiles and jewellery. January-October 2013 saw textile exports reach US$6.9bn; this substantial sum has prompted the country to draft plans regarding a logistics centre for textiles, apparel and leather, to reduce the clustering of textile, garment and leather industries in many regions and cities.
- In January 2014 Apple is to open its first Turkish store, in Istanbul. It is to be located in a shopping mall alongside other high-end retailers. Three more stores for Turkey are also in the pipeline.
- Turkey is exporting to an increasing number of countries, with the Turkish economy minister stating on December 2 2013 that the country has 'finally made exports to Micronesia and Nauru (a small island in Micronesia) for the first time'.
- Turkey's retail sector is driving growth in the country's real estate, with Property Magazine International stating in November 2013 that the country is the second most attractive in Europe in retail terms, behind only Russia. This has led to a number of foreign players setting up shop in Istanbul and Ankara.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- Singapore Real Estate Report Q1 2014
- South Korea Real Estate Report Q1 2014
- United Arab Emirates Real Estate Report Q1 2014
- United States Real Estate Report Q1 2014
- Peru Real Estate Report Q1 2014
- Croatia Real Estate Report Q1 2014
- Philippines Real Estate Report Q1 2014
- Czech Republic Real Estate Report Q1 2014
- Greece Real Estate Report Q1 2014
- Bulgaria Real Estate Report Q1 2014