One-third of Istanbul office space is empty – report

Almost one-third of office space in Turkey’s commercial capital of Istanbul lies vacant, the Diken news website said citing a report by Propin, a leading property investment company.

Office rental prices in Levent, Istanbul’s most expensive district, have fallen to 44 dollars per square metre in the second quarter, the lowest level in a decade, Diken reported.

Turkey’s property market is under pressure after interest rates and inflation surged. Ratings agencies are warning that government measures to stimulate the economy may lead to overheating and a hard landing. The economy grew at an average of more than 8 percent in the nine months to March.

Class A office space in Istanbul, which is Turkey’s largest city, has fallen in price by 12 percent in the second quarter from a year ago o an average $22.7 per square metre, the website said. Class B space has dropped by as much as 20 percent to $11.7, it said.