2025 Office Market Outlook - Alfa Invest

2025 Office Market Outlook

In the first quarter of 2025, a decline in demand for offices was observed with the impact of the decline in domestic demand on company turnover due to interest rates.

Especially after the pandemic, the expansionary monetary policy implemented after the pandemic and the low-interest loans and easy access to credit have maintained and even increased the mobility in the market. As in many sectors, prices have increased significantly in the real estate sector. Due to the tightening in supply in the office sector, rents have exceeded pre-pandemic levels.

In the second half of 2023, with the Central Bank's shift to a tight monetary policy with the main objective of reducing inflation, credit interest rates rose and access to credit became more difficult, leading to stagnation in prices.

In the period after the pandemic, especially in 2022 and 2023, quality office buildings in Istanbul were in high demand due to the postponed demand and caused a significant increase in rental levels in the following years. The first half of 2024 was a period of high demand and panic leasing transactions.

In the second half of 2024, the rate of rent increase and vacancy rate decelerated. In the last quarter, a flat outlook prevailed in the market. Along with the rising rents, the year 2024 provided the closing of the rent gap between the old tenant and the new tenant.

2025 yılı ilk 3 aylık dönemde gerçekleşen kira yenilemeleri, geçtiğimiz yıl yapılan kiralamalardaki yüksek kira bedeli ve enflasyonist ortamın da etkisiyle eski kiracıların kirası, yeni kiralama seviyesinin üstüne çıkması yılın ilk çeyreğinin en önemli olayı olarak karşımıza çıkmıştır. Geçtiğimiz yıl ilk çeyreğine göre işlem hacminde yaklaşık %50-55 oranın düşüş olmasını ve bu durumun etkisiyle kira seviyesi ve boşluk oranında yatay görünümün devam etmesini beklemekteyiz. Yeni kira seviyesindeki yatay görünüm, kira yenilemelerindeki kira bedellerinin daha yüksek olmasına olanak sağlamıştır.

In 2025 half year, we expect the rent level to remain the same, while the downward trend in vacancy rate will continue at a slower pace.

We see that new office investments are on the agenda due to the rise in rent levels and the limited supply in the office stock, and we expect new office investments to enter the market in the coming period.

"Personal Data Protection Law"
Clarification Text

Definitions
In this clarification text;

Personal Data: Any information relating to an identified or identifiable natural person,
Personal Data Protection Law ("KVKK"): Law No. 6698 on the Protection of Personal Data, which entered into force after being published in the Official Gazette on April 7, 2016,
Alfa Invest: Alfa Invest, Akmerkez B3 Block, Kültür Mh. Nisbetiye Cd. No:54 D:83
Beşiktaş/İstanbul, Turkey,
Data Processor: The natural or legal person who processes Personal Data on behalf of the Data Controller based on the authorization granted by the Data Controller,
Data Controller: The natural or legal person who determines the purposes and means of processing Personal Data and is responsible for the establishment and management of the data recording system,
refers to.

Data Controller
Pursuant to the LPPD, your personal data that you share as an interlocutor, member, donor, scholarship recipient, intern, supplier, visitor, grant recipient, award recipient, supported, Changemaker, contestant, program partner and/or Alfa Invest employee/manager will be evaluated by the Alfa Invest legal entity designated as the data controller within the scope specified below.

Purpose of Processing Personal Data
Your personal data pursuant to Articles 4, 5 and 6 of the LPPD;

- In accordance with the law and good faith
- Accurate and, where necessary, up-to-date
- For specific, explicit and legitimate purposes
- Relevant, limited and proportionate to the purpose for which they are processed
- Retention for the period stipulated in the relevant legislation or required for the purpose for which they are processed
will be processed in connection with the following activities of Alfa Invest in accordance with the rules of Alfa Invest.

Alfa Invest activities;
- Providing scholarships, internships and dormitory opportunities
- To have permanent works constructed and repaired, to carry out joint projects and programs
- Awarding prizes in the fields of education, arts and sports
- Organizing/supporting culture and art events
- Creating grant programs and partnerships
- Organizing seminars
- Providing and conducting communication for activities

Transfer of Personal Data
Pursuant to Articles 8 and 9 of the LPPD, your personal data may be transferred to third parties (program partners, cooperating institutions, suppliers, donors, foundation managers/employees, Alfa Invest companies, Alfa Invest management/security unit, legally authorized public institutions and organizations, legally authorized private law persons or foreign countries) deemed necessary within the framework of Personal Data processing conditions and purposes in order to maintain Alfa Invest's activities within the scope of the above-mentioned purposes.

Method and Legal Grounds for Collection of Personal Data
Your personal data, by Alfa Invest

- Scholarship / Internship / Dormitory Application Forms
- Alfa Invest Websites Contact Forms
- Alfa Invest Websites E-Newsletter Registration Forms
- Grant Program Application Forms
- Job Application Forms
- Contest Application Forms

It may also be collected, processed and transferred for the purposes specified in this Clarification Text within the scope of the personal data processing conditions and purposes specified in Articles 5 and 6 of the KVKK, in accordance with the basic principles stipulated by the KVKK in order for Alfa Invest to continue its activities through such channels and based on different legal reasons.

Rights of the Personal Data Subject
Pursuant to Article 11 of the LPPD, anyone can apply to the data controller and request information about him/her;
a) Learn whether their personal data is being processed,
b) Request information if personal data has been processed,
c) To learn the purpose of processing personal data and whether they are used in accordance with their purpose,
ç) To know the third parties to whom personal data are transferred domestically or abroad,
d) To request correction of personal data in case of incomplete or incorrect processing,
e) To request the deletion or destruction of personal data within the framework of the conditions stipulated in Article 7 of the KVKK,
f) To request notification of the transactions made pursuant to subparagraphs (d) and (e) to third parties to whom personal data are transferred,
g) To object to the emergence of a result to the detriment of the person himself/herself by analyzing the processed data exclusively through automated systems,
ğ) In case of damage due to unlawful processing of personal data, to demand compensation for the damage,
rights.

If you apply to Alfa Invest in writing regarding your rights mentioned above, a response will be given free of charge within 30 (thirty) days at the latest depending on the nature of your request.
You must submit your application in writing and with wet signature, in a clear and understandable manner, including documents establishing your identity and address information, by hand, by post or through a notary public to Alfa Invest, Akmerkez B3 Blok, Kültür Mh. Nisbetiye Cd. No:54 D:83 Beşiktaş/İstanbul.