Turkish commercial property surges 31% annually in nominal terms, but stagnates in real terms

Turkey's central bank has released first-quarter 2026 data showing the Commercial Property Price Index (CPPI) rising 31% in nominal terms, yet remaining flat when adjusted for inflation. On a quarterly basis, prices climbed 7.7%.

Istanbul's commercial properties are appreciating fastest, at 19.6% annually, with office space rising slightly faster at 19.7%. Ankara presents a sharper picture: 36.3% for commercial real estate and 41.5% for offices. Izmir's growth rates are more modest, at 29.8% and 26.7% respectively.

Retail property—shopping centres and retail units—exhibits similar dynamics, with 31.2% nominal growth offset by near-zero real growth. This suggests investors are purchasing primarily as an inflation hedge rather than seeking genuine capital appreciation.

Source: Hurriyet Daily News Economy