OfficeIn the first half of the year, the Russia-Ukraine war, the ongoing pressure of the pandemic on the economy and the increasing inflation with disrupted supply chains were on the agenda all over the world and Turkey in particular. After the Russian invasion of Ukraine in February 2022, the 5th month of the occupation has passed as of June. In this process, many international companies chose to terminate or suspend their activities in Russia. Turkey, has become a priority destination preferred by many companies leaving Russia amid tensions, both due to the advantage of its geopolitical and political position.
In the first half of 2022, the general supply in the Istanbul office market remained at 6,46 million sq. m. While total leasing transactions in the first quarter of the year reached 123,424 sq. m and 120,892 sq. m in the second quarter. Thus, the total leasing transactions in the first half of the year reached 244,316 sq. m. This is a two-fold increase compared to the same period of the previous year. Lease transactions agreed in the first half mainly comprised new lease agreements with a ratio of 83% and 85%, both in square meters and in numbers respectively. Lease renewals are on the decline compared to the previous year.
In the first half of 2022, although the international supply chain crisis continued to put pressure on the sector due to increasing inflation, increasing costs and fluctuating exchange rates, the pessimistic atmosphere in the pandemic period dissipated and replaced by a positive environment, which increased customer demand, especially in physical retail.
Considering the retail data of shopping malls provided by AYD/Akademetre; In May 2022, a significant increase of 358.3% was observed in the shopping center turnover index compared to the previous year. A significant increase was recorded in all categories compared to the previous year. Clothing and footwear categories increased by 393.9% and 443.0%, respectively, in square meter productivity indexes, and an increase of 12.3% and 13.8% was observed in these categories, respectively, compared to the previous month.
In the first half of 2022, it was observed that new store openings gained momentum. In addition, with the Ukraine war that started in February, interest from Russian and Ukrainian brands and investors in Turkey has increased.
In the first half of 2022, the export trade volume stood at US$102.5 billion in the January – May 2022 period, a significant increase of 20.4% over the same period of the previous year. Import trade volume was recorded as US$145.7 billion in the same period, an increase of 40.8% compared to the previous year. However, in the January – May 2022 period, the foreign trade deficit increased by 136.0% to US$10.7 billion. Even though the pandemic started to lose its effect in the first half of the year, customer demand was limited due to the Russia-Ukraine war and price increases deterred buyers and negatively affected production. The PMI value of 49.2 measured in May decreased to 48.1 in June.
In the first quarter of the year, warehouse transactions reached 327,637 sq. m, while in the second quarter, it reached 124,334 sq. m. Thus, the total transaction volume in the first half of the year was recorded at 451.971 sq. m. Currently, the supply of quality warehouse space is limited and the demand for large warehouse space is high.
n the first half of 2022, the effects of the ongoing Russia-Ukraine war created a shortage in the housing supply in Turkey, while high construction costs along with the exchange rate fluctuations made its impact on housing sales. It was realized as 726 thousand 398 units with an increase of 4%, thus the highest half-year sales rate of all time was recorded. In addition, in line with the reductions in housing loan interest rates, mortgage sales increased by 63.50% compared to the same period of the previous year and amounted to 170,317. Sales to foreigners, on the other hand, increased by 72.7% compared to the same period of the previous year and reached 35 thousand 383, and Istanbul ranked first in this category, as in total housing sales. However, compared to the same period of the previous year, first-hand house sales were recorded as 208 thousand 451 with an increase of 24.2%, while second-hand house sales were recorded as 517 thousand 947 with an increase of 34.6%. In the January - June 2022 period in building permits, the number of flats in the building permits was recorded as 125,854, while a 27.95% decrease was observed compared to the same period of the previous year. In terms of building occupancy permits, the number of flats decreased by 2.41% compared to the same period of the previous year and was recorded as 155,305.
In the first half of 2022, hotel occupancy rates in Turkey increased by 71% compared to the same period of the previous year, and were recorded at 62%; In Istanbul, it increased by 95% and was recorded as 69%. The average daily price of rooms sold increased, on the other hand, in the first 6 months of 2022 in Turkey and Istanbul, respectively, to €93 and €113. In Europe, in the first 6 months of 2022; The average occupancy rate was 58.3%, below the average of Turkey. The average daily price of rooms sold in Europe was €121, and Turkey lagged behind Europe with the room price recorded in the same period.