Propin: Istanbul office market overview (TR)
Thursday 27 October 2011
|Propin Property Investment Consultancy has prepared the 2011 Istanbul Office Market Report third quarter. The report covers changes in the office market in July, August and September and presciences for the coming quarters.|
|According to report, during the third quarter of the 2011 Istanbul Office Market, the value of the dollar in Turkey has increased. This increase has occurred as a result of the change in economic conjuncture in the World and in Europe, and has affected rentals and purchases in a variety of ways. Firstly, no recessions have been experienced in rental transactions. However, the negotiation period (of the companies in the process of forming contracts) has extended. Secondly, the increase in the value of the dollar has caused a recession in sales transactions. Lastly, the fact that the investors re-evaluate their investments has caused suspension of potential sales.|
In the Out of CBD – Europe a sharp decrease in vacancy rates occurred
According to the Propin’s 2011 third quarter report, the vacancy rate in class A office buildings in the CBD has increased to 10.7%, compared to the second quarter. The vacancy rate of class B office buildings has decreased compared to the second quarter and receded to 6.6%.
Propin informs that even though some certain rentals, such as Huawei’s rental in Maslak Center with the consultancy of PROPIN, have been accomplished in Maslak in the third quarter of 2011, the vacancy rates have increased. The vacancy rate, which was 4.3% in the second quarter of 2011, has increased to 7.3%.
Propin says that one single rental transaction in Taksim –Nisantasi District has caused a sharp decrease in vacancy rate in the Out of CBD – Europe area. As a result of the rental of the Ciner Building, which has a significant place in the stocks, the vacancy rate in this district has decreased from 38.9% to 3.2%.
In respect of the report, due to the recent relocation of the office users in Kozyatagi, the vacancy rate of class A buildings has increased to 13.4% compared to the second quarter of 2011. Because of the increase in the number of office buildings (of which all have had their construction work completed and been brought into use) in Kavacik the vacancy rates in this district have increased; the vacancy rate of class A buildings has increased to 33.4%.
The stability in average rents of Class A buildings is continued
Propin informs that the rent averages of class A buildings generally have a balanced curve, except for the Out of CBD – Asia area, when compared to the previous periods. A decrease in the Out of CBD – Asia area has been detected in this quarter and the average rental price was 18.8 US$/m²/month.
With reference to the report there is a significant decrease in rent averages of class B buildings in the CBD in the third quarter of 2011. The average rent price, which is 3.7 US$/m²/month, has decreased to the lowest level seen this year.
Propin explains that there are no significant changes in rent averages in the Out of CBD – Europe area or the Out of CBD – Asia area, and similar rent prices have been observed in the last year. It can be said that the rent prices of the Out of CBD – Asia area and the Out of CBD – Europe area have achieved a certain standard.
According to the report the highest rent price has been requested in the Levent District with 46 US$/m²/month. The second highest rent price has been found in the Zincirlikuyu – Esentepe - Gayrettepe District with 45 US$/m²/month.
Propin predicts that in the near future, Ataþehir, Kartal and Kaðýthane will join twelve office districts. Propin says that this will occur for three reasons: firstly, Ataþehir has started to be structured as a finance center in an upper scale plan. Secondly, many office projects, constructed around the D-100 in Kartal, are being developed. Finally, there is a lot of support for this prediction from many office projects started on the Cendere Road Axis in Kagithane.