Istanbul's commercial property rents skyrocket, according to a recent report
Istanbul's commercial real estate market has reached a milestone, with prime office rents hitting unprecedented levels. According to a recent report, the overall supply in the Istanbul office market in the first half of 2025 was 7.18 million square meters.
As of the second quarter of 2024, the average monthly prime office (Class A) rental rate in Istanbul reached a record high of 904 Turkish lira per square meter. This significant year-on-year increase, driven by strong demand since 2021, has continued into 2025, with reported August rent increases for commercial properties at 41.13%.
The future outlook for prime office rents in Istanbul appears robust, underpinned by sustained urbanization and continued demand from business sectors concentrated in prestigious districts such as Maslak, Istanbul’s main business center known for high-quality office and residential developments. Given the persistent economic expansion and urban demand trends, prime office rents are likely to maintain upward momentum in the near term.
The highest ever recorded prime rents in Istanbul are found in the Levent-Etiler district. However, the report did not mention any specific dollar figures for the increase in prime rents nationwide or in the Levent-Etiler district.
Interestingly, the report highlighted that insufficient supply and limited availability of large square meters of space led companies to lease smaller spaces in Istanbul. This trend of leasing smaller spaces is expected to continue, with the upward pressure on prime rent levels likely to increase in the coming period.
In the first half of 2025, there was a 15% decline in transaction volume in Istanbul's Grade A office market compared to the same period of the previous year. According to the report, this decline was mainly due to high rent levels, causing tenants to renew leases with existing owners rather than leasing new space.
On a national scale, prime rents increased 11.06% in the first half of 2025, according to the report. Despite the decline in transaction volume in Istanbul, the overall vacancy rate in Istanbul's commercial real estate market increased by 0.1 percent in the second quarter of 2025, remaining at 9.9 percent.
In summary, Istanbul's prime office rents are at an all-time high, with the average monthly prime office (Class A) rental rate in Istanbul reaching approximately 904 Turkish lira per square meter. The future outlook remains positive, with strong demand and urban growth in business hubs like Maslak supporting further rent increases. However, the limited supply and high rent levels are causing companies to lease smaller spaces and tenants to renew leases rather than seeking new space, leading to a decline in transaction volume.
Investors eyeing the real-estate market in Istanbul may find opportunities in the ongoing increase in prime office rents, as these levels continue to reach new highs, driven by strong demand and sustained urbanization. The finance sector should also take note of the persistently stable economic expansion and urban demand trends, which are likely to maintain the upward momentum of prime office rents in the near future.
