The Valuation Experts Association of Turkey (TDUB) has scrutinized Büyükdere Street, the top central business area (CBA) on the European side of Istanbul. According to the study, the square meter sales values of office areas in the region range from 4.000 – 12.500 dollars, while the monthly square meter rental value is between 35 to 55 dollars.
Bekir Yener Yıldırım, the Chairman of the Valuation Experts Association of Turkey (TDUB), which is the umbrella organization of real estate valuation companies and experts, and the most extensive professional association related to real estate in Turkey, stated that new office projects had been undertaken in the region at pace, following the opening of a plaza on Büyükdere Street at the end of the 1980s. Yıldırım said that in time, this axis had become an office region where the finance and service sectors were in high concentration, and become a region preferred by international companies. He stated that the region is the most preferred office region on the European side of Istanbul, today.
The central business area of Istanbul
Yıldırım, who said that the region, which is a Central Business Area (CBA), had become concentrated on the Büyükdere Street – Maslak line with the impact of the metro, stated that both the new shopping centers and the high standard office areas on this line in the last ten years had increased demand for the region, and that the new plaza style offices on the Esentepe – Zincirlikuyu – Levent – Maslak line had also been effective in this development. Yıldırım said that Büyükdere is primarily an axis where class A offices provide a service, and that all of the infrastructure services for the said offices had been completed, adding that there were no new investments on the axis, but that the infrastructure services were being renewed on a gradual basis in line with needs.
Yıldırım, who stated that Büyükdere Street is in a unique position without competition among the central business areas of the region with its advantage of providing crossings over the Bosphorus via the Bosphorus and Fatih Sultan Mehmet Bridges, said that on the other hand, transport access to the region had also increased due to a large section of the Yenikapı – Hacıosman metro line. Yıldırım drew attention to the fact that demand in the region was very high with the new shopping centers, class A office areas and investments designed as Business Hotels.
Yıldırım said that most of the old buildings in the region had been demolished and re-built at high standards, but that there were difficulties in the generation of land for new projects in the region due to the speedy rise in real estate prices on the axis, and that this is at the top of the largest risk factors for new investments. Yıldırım stated, on the other hand, that the rental / purchase transactions for the properties in the region were in foreign currency, and that the excessive increase in exchange rates in the recent period had put pressure on the occupancy rates in the region.
Office square meter sales values between 4.000 – 12.500 dollars
Yıldırım said that the average square meter sales prices of the offices in the region varied between 4.000 and 12.500 dollars, and the said values were between 6.800-8.500 dollars at Metrocity, 5.000-7.000 at Polat Plaza, 4.800-5.500 at Büyükdere Plaza, 5.500-7000 at the Maya Akar Center, 4.500-6000 at Harmancı Giz, 4.000-5.250 at Nurol Maslak, 4.000-5.500 at Yapı Kredi Plaza, 4.000-5.500 at Spring Giz Plaza, 4.000-5.250 at Baby Giz Plaza, 7.500-8.500 at Akmerkez, 9.000-12.500 at Kanyon Office, 8.000-9.500 at Apa Giz Plaza and 8.500-12.000 at Sapphire.
Yıldırım stated that when looking at the monthly square meter rental prices in dollars, these were between 40-50 dollars at Metrocity, 35-45 at Polat Plaza, 35-45 at Büyükdere Plaza, 35-50 at the Maya Akar Center, 35-50 at Harmancı Giz, 30-45 at Nurol Maslak, 35-45 at Yapı Kredi Plaza, 35-45 at Spring giz Plaza, 35-45 at Baby Giz Plaza, 40-55 at Akmerkez, 45-55 at Kanyon Office, 45-50 at Apa Giz Plaza and 45-55 at Sapphire.