2015 retail market size in Turkey is estimated 225 Billion USD.

It is anticipated to reach 299 Billion USD in 2018.

Growth rate in Retail industry is 2.5 times more than Turkey’s average economic growth.

Turkey is in top 10 in terms of consumer expenditure, in top 5 in terms of food consumption in Europe.

Last 5 years’ trend shows us annual growth is avarage 9% in Retail.

 

Population Focus

Turkey’s population is 78.7 M as of 2015.

Istanbul represents 18.6 % of total population.

The average age of Turkish population is 31 years old, a much younger than EU average.

67.8 % of population is between age 15-64 ( representing work force )

 

 2015 Population in Big Cities

 

 

 

 

 

 

 

 

 

’Retail Market attracts  numbers of international investors  with evident growth opportunities; lower degree of market saturation, increasing purchasing power and strengthening economic  structure. Market researches reporting retail expanditures of household is increasing more rapidly than household income’’.

 

Market Saturation Level

Gross leasable area (GLA) of shopping centers in Turkey as of 2015 was 10.5 M sqm, Istanbul holds  38% of total supply. With the pipeline projects total GLA is forecasted to reach 13M sqm within 2018.

France is the largest shopping center market in Europe as of H1 2015, with floorspace at just over 17.7 M sqm.

The UK takes the second spot with 17.1 M sqm followed by Russia with 16.3 M sqm.

Total number of shopping centers in Turkey in 2010 was 231, this number reached to 360 within 2015 and it is expected to reach 415 at the end of 2018, through 55 new  construction pipelines .

In the first half of 2015 total GLA in Europe increased 1.4 M sqm to reaach 152.6 M sqm by the end of H1, with Central Eastern Europe (CEE) representing 78% of all new GLA.

Russia and Turkey were the main contributors to this robust proportion , responsible for adding 811K sqm of space in H1 2015.

Average shopping center density per 1000 capita in Turkey was 135 sqm in 2015 , while it was 129 sqm the year before. It is forecasted to escalate up to 152 sqm at the end of 2017.

In the primary Western European cities the average figure is 343.7 sqm.

 

Statistics

According to Council of Shopping Centers Turkey, 2017 Report;
Avarage Turkey shopping centers’ GLA productivity (m2) reached to 744 TL in 2016, with 5.5% growth compared to 2015.
Productivity in Istanbul is measured as 836 TL per m2 with 3.3% growth compared to 2015.

 

Review

The existing retail market saturation and economical  indications are the key factors for capital allocation for the future development activity at a city level.

Istanbul, Ankara, London, Sofia and Prague are among the most undersupplied markets in Europe that also offer above average retail sales growth over the next five years.

Core and/or large CEE markets are becoming more mainstream targets for investors as they search for yield.

According to analysis conducted by Cushman&Wakefield , Turkey is among the main investment hotspots for international investors.

 

Sources & References
  • Turkish Statistical Institute
  • Cushman & Wakefield Research Publication
  • Dönüşürken Büyüyen Türkiye, PWC
  • Council of Shopping Centers Turkey

 

This report is conducted by Retail Consulting Turkey through using data and information coming from open to public internet sites of credible retail organizations, research companies and corporations. A content of this report is solely informative and shall never be interpreted as advice for trade of financial instruments . Under no circumstances Retail Consulting Turkey does guarantee that assesments , benchmarks and other information published  in this report is definite . Retail Consulting Turkey may any time change or update  this report partly or entirely.