Real Estate

Market size of real estate investment trusts reached ₺58 billion

According to the GYODER Indicator, the REIT Index grew by 60% in 2020 and 106% in the last two years.

As of the end of 2020, the market size of real estate investment companies (REIT) in Turkey reached ₺58 billion.

The “GYODER Indicator – Turkey Real Estate Sector 2020 4th Quarter Report” prepared by the Real Estate and Real Estate Investment Trust Association (GYODER) has been published.

According to the report published under the sponsorship of Yapi Kredi Bank, the number of housing sales increased to 1 million 499 thousand 316 in 2020, reaching the highest number on an annual basis.

The same record was experienced in the first sales with 469 thousand 740 units. The highest increase rates in house prices were seen in November. The annual change was 29.97% in the housing price index and 31.14% in the new housing price index.

As of the end of December, the volume of housing loans reached ₺278.3 billion. While the share of public deposit banks in total housing loan volume was 56.5% in December 2019, it increased to 63% in December 2020.

REIT Index yielded 60% return in 2020

While the BIST 100 Index increased by 29% last year, the REIT Index rose from 405 points to 647 points, achieving 60% return and closed the year with a record growth. When we look at the returns for the last two years, the REIT index has grown by 106%.

The market value of REITs has reached ₺58 billion. According to the last quarter data, the rate of institutional investors in 2020 was 47.29% and the rate of foreign investors was 13.91%. The data for 2020 is considered as a positive sign for the number of REITs, which have been fixed at 33 for the last 3 years, to increase in 2021. This year, the establishment and public offering of new REITs in specific areas such as hospitals, infrastructure and data centers will add further depth to the sector.

In Turkey, the alternative investment fund market size reached ₺11.7 billion as of December 31, 2020. A total of 47 real estate investment funds received investments, including the funds that are still in the issuance period and have received investment for the first time. Real Estate Investment Fund size increased by 20% compared to the previous quarter and reached ₺8.5 billion.

The future of the office market is changing

As the business world changes due to the global epidemic, the future of the office market is also changing. In addition to this change, in line with the expected partial recovery in the 2021 economy, the office market is expected to begin to recover in parallel with the rising directions of work areas.

At the end of last year, the general supply in the Istanbul office market remained at the same level as 6.46 million square meters. While the rental transactions recorded in the fourth quarter were approximately 89 thousand 514 square meters, in 2020 the rental transactions were 329 thousand square meters in total. The transaction volume recorded in the fourth quarter was at a similar level compared to the previous quarter, dropping 12% compared to the same period of the previous year.

As of the end of December, the current shopping center supply in Turkey reached 13.6 million square meters in 447 shopping centers.

Source: AA / Translated by Irem Yildiz

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