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Don't rent in these streets of Istanbul if you dont want constant rent hikes

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    Don't rent in these streets of Istanbul if you dont want constant rent hikes

    According to a Cushman & Wakefield report, the bustling high street market in Istanbul experienced substantial rent hikes in 2023, primarily driven by high occupancy rates and soaring demand.

    İstiklal Avenue emerged as the most frequented street, Abdi İpekçi Street as the priciest, and Bağdat Street as the hotspot for foreign brand leases. Overall foot traffic surged across all streets compared to 2022.

    In 2023, İstiklal Avenue saw weekday foot traffic of 207,000 and weekend foot traffic of 313,000. Bağdat Street on the Asian side welcomed 144,000 visitors on weekdays and 130,000 on weekends. Meanwhile, Nişantaşı area streets on the European side witnessed 82,000 and 96,000 visitors on weekdays and weekends, respectively.

    The report highlights a 66.7 percent year-on-year increase in prime rent on Istanbul's high streets, with Abdi İpekçi Street commanding $220/month, marking a 100 percent surge from the previous year. İstiklal and Bağdat Streets followed suit with rents of $200 (up by 46.7 percent) and $150 (up by 150 percent), respectively.

    Abdi İpekçi Street reclaimed its status as the priciest street, dethroning İstiklal Street after 13 years. Comparatively, London's Bond Street saw a rent hike of 11.5 percent to $2,480, and Champs Elysees experienced a 2.86 percent increase to $1,395.

    Due to rent pressures and limited space on high streets, stores, particularly in the food and beverage sector, expanded to adjacent side streets. The majority of transactions occurred in apparel, shoes, and bags, followed by food and beverage, with a 40 percent decrease in vacant stores from the previous year.

    Despite the dominance of domestic brands, Bağdat Street boasted the highest share of foreign brands at 21 percent, followed by İstiklal Avenue (16 percent) and the Nişantaşı area (15 percent).

    The first quarter of 2023 saw increased urban transformation efforts, particularly on Bağdat Street, due to an earthquake disaster. These regulations are anticipated to positively impact the retail sector, with new buildings expected to augment supply in the coming years.​