Thursday, March 18, 2010

MIPIM 2010: Outlook: Turkey

Wisconsin Real Estate MBAs report from MIPIM 2010:

Panel: Recovery of the Real Estate Sector in Turkey

Turkey’s retail market has seen significant growth in recent years and has continued to expand its supply despite the crisis. However, as a result, rents have fallen by approximately 15 to 20%. The office market has performed better than the retail market throughout the crisis. Higher quality office space is currently undersupplied in the market. There will likely be significant opportunity in the future for value-add development in the conversion of Class-B office properties.

There is currently a large gap between foreign investor price expectations and local owner price expectations, which has caused the limited sales. While rents have declined, local owners have been less affected due to lower debt levels, and therefore have not been forced to sell properties at depressed prices to raise capital.

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