As a primary hub in trade and logistics activities of Europe and Asia, Turkey has a promising commercial property market to provide investors. Although the global pandemic made the strings tighter for the construction industry in the last two years, there has been an increase in the demand for warehouses and storage facilities to supply e-commerce activities that are on the rise.
According to the report shared by GYODER, the remote working trend as a result of the pandemic caused some changes in the office market. Since many offices worldwide shut down for an indefinite period, the productivity and flexibility of the employees became the key to leading the process with only a few damages. These two concepts need more attention for determining the future of workspaces in terms of successfully transferring the new normal into the business world.
Another pinpoint of the report is that even if the overall leasing activities have decreased due to current changes, there has been an increase in the employment traffic in need of office place compared to other European countries. The general foresight predicts a parallel growth in the office market in line with the economic recovery in the following days.
Increase in Demand of Warehouses and Storage Units/Facilities
From small-scale entrepreneurs to giant online retailers, there has been a burst of e-commerce demand globally. As people continue purchasing the smallest things online, companies rapidly add to their product categories and types. The same is true for Turkey, as can be seen especially in big cities like Istanbul, Ankara, and Izmir. While the physical retail stores of large brands can overcome the difficulties COVID-19 has caused, like leases and maintaining, others suffered inconceivably. That is why a radical turn to online business is expectable from the owner’s perspective.
While there is a shortage of land area for building extensive warehouses in metropolitan cities like Istanbul, the alternatives of improving logistics to a circle of routes remain effective. What business owners can work on at this point is to analyze and focus on their efficiency at a level they have never encountered before. As the lesson learned from the pandemic, every company should have a backup plan ready to be used in crisis management. It is also a blaster for construction companies who now should offer better solutions capable of complying with all the conditions.
Final Remarks on the Market
Some things need highlight concerning the future of the commercial real estate market in Turkey regarding the sectors to pay attention to these days: pharmaceuticals, packaged goods, and cosmetics. These rising industries might be the recovery for the commercial market since they still generate multiplied revenues. Their specific needs for the manufacturing facility may also lead to the formation of a brand-new sector.
Another comment that needs putting is on the stores in shopping malls that once anticipated high cash flow. While they may remain hesitant by buyers and renters, they may see an increase in demand as vaccination gains momentum and currently suppressed social needs of people began revealing.