Dynamic analysis of Istanbul office markets with highest demand and office rent

Abstract

From the 1980s onwards, restructuring of economy and globalization has increased the size and number of companies in Istanbul and demand for modern office space which cannot be provided in the old CBD due to construction restrictions. Thus, multi-center development has started in the city in order to answer to the growing demand for modern office markets. The present study investigated the growth and decline of office rents in office markets which have highest demand and office rents. According to the results of the study, while office rents in the office markets with growth potential have increased, that of the markets with supply increased dramatically between 2011 and 2016. On the other hand, while office rents in all of the office markets were sharply declined in 2021 due to devaluation of Turkish Lira against USD. Although the pandemic has made Work from Home (WFH) and Hybrid working models a global trend, A class office demand stayed strong due to well-being requirements on office area. Thus, it is expected to have a positive impact on the economy of the city.