Jones Lang LaSalle Turkey Managing Director Alan Robertson said office rents in Istanbul are rising, while class A office rentals are between 14 and 20 euros per month per square meter in Europe’s central business area, as well as in Asia.
Jones Lang LaSalle’s “Third Quarter of the European Office Hour Report” said that in the third quarter of the year, rents of Class A offices continued to rise.
Commenting on the report, Jones Lang LaSalle Chairman of the Pan-European Office and Industrial Markets Chris Staveley noted that office inquiries partially fallen in the third quarter but the demand is positive and the demand is up 36 percent compared to last year.
Staveley noted that capital index increased by 4.7 percent in the third quarter. In particular, Staveley pointed out that there was a decrease in revenue in 13 of the 24 European markets, including Paris and Moscow in the quarter.
Jones Lang LaSalle Turkey Managing Director Alan Robertson, who assessed the office market in Turkey, also stated that they placed the Istanbul market at 6 o’clock on the third quarter Jones Lang LaSalle European Office Clock, believing that the market stands at the point of full change.
Robertson stated that the rents that have fallen due to the economic crisis since the beginning of 2010 have been in balance in Istanbul, mainly due to the increase in tenant demand, the limited number of options for high quality offices in many parts of Istanbul and the inadequacy of construction sites.
Robertson noted that increasing demand and declining supply scenarios could lead to rental increases in the short term and that Class A office rentals are now between 14 and 20 euros per square meter per square meter in Asian office space, compared to 30 euros per square meter per square meter in today’s European central business area.