Istanbul Office Market

The effects of the social and spatial transformation caused by globalization can also be seen within the Istanbul metropolitan area, while Turkey becomes one of the best developing countries, which provides a suitable environment for business, Turkey receives firms from over 90 countries around the world.. Companies in different fields such as, financial services, IT, construction, and media have taken place all over the country, particularly Istanbul, which is considered the economic capital of Turkey.

The growth of the service sector in Istanbul attributed to the expansion of foreign multinational corporations, transnational banks, growth in international relations, the extension of foreign trade, and the enlargement of business size. Within this process, a need for qualified and user-friendly office areas came into existence. 

Location is one of the most important determinants of the demand of the office market. Having an office close to the metro station is considered a big advantage for companies and their staff. Furthermore, prestigious office buildings, which equipped with facilities such as, restaurants, sports clubs, and cultural facilities, alongside the physical attributes and size also, can play a key role in attracting firms for their workplaces. 
Construction companies developed and are still developing user-satisfying and well-equipped office buildings that respond to the desires and needs of the different business sectors with respect to location and mechanical infrastructure necessitated by the new telecommunications systems.

Office areas in Istanbul are analyzed based on classification into a total of 8 sub-regions, 4 on the Asian side of the city and 4 on the European side.
1.    Istanbul West area which is the surrounding area of the Atatürk Airport
2.    The European Side CBD area which include Levent, Etiler, Esentepe / Gayrettepe, Şişli, Beşiktaş and Taksim.
3.    Maslak
4.    Kağıthane/Candere
5.    Kavacık
6.    Ümraniye
7.    Kozyatağı/ Ataşehir
8.    Istanbul East which is the surrounding area of the Sahiba Gökçen Airport

After examination of the regional distribution of the total office stock in Istanbul shows that, in descending order of their share of the total stock, the regions with the highest levels of Class A office stock are the CBD (32%), Kozyatağı/Ataşehir (16%), Kağıthane/Cendere (15%), Ümraniye (13%) and Maslak (12%). The office stock in these five regions constitutes 88% of Istanbul’s overall total. It would therefore be fair to say that these five regions determine developing office parameters in Istanbul.

Current reports anticipate that demand for office space from the private education and private healthcare sectors that have undergone a period of rapid growth in recent years will continue moving forward. Demand from these sectors will impact office vacancy rates. Also after its completion, the Istanbul Financial Centre project will house the Headquarters of the Banking Regulation and Supervision Agency (BDDK), the Central Bank, the Capital Markets Agency, Ziraat Bank, Halkbank, Vakıfbank, and other institutions. With the draw of the Istanbul Financial Center complementing the region’s existing accessibility and advanced infrastructure advantages, Kozyatağı – Ataşehir has begun to gain prominence as one of the Asian side’s leading office regions. This is expected to have an imminent positive impact on demand for office and residential space in the region’s environs. The financial center project in the Kozyatağı/Ataşehir region together with the major financial institutions it will house is expected to transform the Kozyatağı/Ataşehir region into Istanbul’s center of attraction and increase demand in this region. It will increasingly be perceived as a prestigious office region, and that rents will rise in line with growing demand.

Last Updated: 11/30/2020 10:34:15 AM