In terms of annual rent increases, Adana ranked first with an increase of 189%, while Izmir ranked second with an increase of 176%, and Manisa was the third with an increase of 175%.
TSKB Real Estate Valuation Inc. has prepared a current research on organized industrial zones (OIZ), which has a guiding effect on the economy and urban development, is among the arteries of the real sector, and hosts many companies.
According to the statement made by TSKB, the research pointed out that the demand for industrial buildings has increased in recent years.
In terms of annual rent increases, Adana ranked first with an increase of 189%, while Izmir ranked second with an increase of 176%, and Manisa was the third with an increase of 175%.
Denizli was the city with the lowest rent increase rate with 81T, while the average increase rate of 31 OIZs was 111%.
Makbule Yönel Maya, General Manager of TSKB Real Estate Valuation Inc., whose views were included in the statement, noted that the limited factory supply and increase in demand, together with the completion of the land allocations, played an important role in the increase in factory rents.
Noting that logistics advantages affect demand, Maya said, “Due to the significant increase observed in 2021, annual rent increases can be limited in places where the base effect is observed and in OIZs where facilities are generally used by the owners. With the pandemic process in 2020, the increase in demand primarily in the Marmara Region increased the prices in this region more than in other regions as of 2021. We can say that this is the main reason why OIZs with the highest rent levels are found in this region.
We observed that Adana, Izmir and Manisa received higher demand in line with their logistics advantages and differentiated positively from the provinces where other OIZs are located. While the province with the lowest annual rent increase is Denizli with 81%, Adana stands out as the region with the highest increase with an increase of 189%.”
Explaining that the payback period can be calculated by dividing the market value of the real estate by the one-year rental value of the investment, Maya drew attention to the fact that the average payback period in OIZs reached 18 years in 2023, from 16.6 years in 2022.
Below-average increase rates are observed in Istanbul and its surroundings
Stating that the increase in construction costs and the increasing demands for industrial structures have led to an increase in the turnaround times, Maya made the following assessments:
“While the return times in the Marmara Region are in the range of 14.5-17.5 years, the return times in other regions except the Black Sea seem to vary between 17-21 years. The high occupancy rate of the land values, on the other hand, is positively affected by the limited land supply and the increase in demand. While the increase in demand in provinces such as Izmir and Manisa is the most important driver of land value increases, the low base values in Kayseri and Adana also have an effect on the strong increase rates.
In Istanbul and its immediate surroundings, which have a more established market and have high sales unit values, increase rates are observed partially below the average. We can also consider the compatibility of the land value increase with the rental value increase as a sign that the market is progressing well. When we look at the annual increase in land value in OIZs, we see an average of 117%. While Kayseri, Izmir, Antalya, Manisa and Adana stand out in annual land value increases, it is also noteworthy that there is an increase above the inflation rate in all regions.
Expressing that demand is high in organized industrial zones where occupancy rates are high, Maya emphasized that low occupancy rates should not be considered as an indication that there is no direct demand.
Maya continued his words as follows:
“The occupancy rate is above 90% in all but 8 of the OIZs that are the subject of the study. The high occupancy rate will support the upward increase in rental values if an alternative zone is not created in the future.
On the other hand, despite the low occupancy rates in the Izmir example, the strong increase in rents is one of the most obvious indicators of an increase in demand for the region. Although the number of OIZs in Tekirdag has increased rapidly in recent years, reaching 14, it is noteworthy that the occupancy rates are relatively low compared to other regions. The fact that it has lower rental prices together with the high occupancy rates in other provinces in the region may positively affect the region. In this way, the correct management of capacity gains importance.”
Source: AA / Prepared by Irem Yildiz