Calling the shopping malls as a shining star would not be
exaggerated and when we see the rise of the sector despite the
financial worries and economic fluctuation in Turkey especially
after December 17 which is the starting time of the bribery and
corruption operation. Number of shopping malls and visitors also
their value have still been on rise.
Investment in Shopping Malls Still Advantageous
To start with, Turkey has been becoming a "shopping
mall heaven" ever since 1988 which is the time that the
first shopping mall was built in Turkey. The shopping mall sector
is now twenty five years old, and has an effective acceleration.
Shopping mall industry has reached the turnover of fifty billion
Turkish Liras annually in 2013. And Turkey has now a dominant
position in Europe as second highest number of shopping malls in
Europe (after Russia). Considering Turkey's current situation
e.g. young population, rise of retail sector etc, it seems that the
number is gong to increase day by day.
In fifty seven of all Turkish Cities, there are totally or more
than 327 shopping malls. Turnover of shopping malls in Turkey has
reached 12% and expecting to rise more than that in the future
years because there are increasingly continuing investments in
Shopping Malls nowadays by funds, banks and foreign investors.
In addition, Turkish retail and shopping mall sector has
becoming more attractive for investors in last ten years. Despite
crisis in European Union and United States real estate, Turkey has
becoming a new market for the foreign investors.
Besides, investors started to invest mostly in Istanbul compared
to other cities in Turkey because of population growth,
immigrations from the countryside of Turkey and modernization of
real estate and retail sector. Especially, modernization of the
retail and real estate sector has a significant role so that Turkey
has been attracting investors in the recent years.
Although Istanbul is regarded as Turkey's biggest shopping
mall market, the city, especially the districts where the
population is dense, seems crossed the saturation line in regard to
number of shopping centers. And there are more on their way to be
built; because of that investing in Anatolian cities e.g. Bursa,
Antalya and even eastern cities of Turkey which have no shopping
malls may provide new gateway for investors to earn much.
On the other hand, in 2014, thirty five more shopping malls are
expected to be put into service valuing seven billion Turkish
Liras. Therefore, shopping malls seem profitable in the upcoming
The New Law is On the Way
Turkey has not a specific law defining shopping malls and retail
sector yet. However, in the middle of 2013, a new draft of a law
started to be discussed. The draft is expected to bring new
standards in regard to branding, payment terms, competition and
force retail sector agents to use software called PERBIS (Perakende
Bilgi Sistemi). The draft law is on the agenda of Turkish Grand
National Assembly (TBMM) Commission.
In addition, the draft law defines several concepts as shopping
mall, chain store and fast moving consumer goods etc. Besides, in
the shopping malls allocating place for merchants and craftsmen
will be compulsory according to law.
Finally, as an advantage, some incentives to be released by
Council of Ministers of Turkey are foreseen in the draft law.
Therefore, if the draft law comes into force it is obvious that the
sector will have standards and provide investors a guideline to
come more confident to invest in.
In despite of fluctuates in Turkish economy, investing in
shopping malls seems still advantageous regarding the rise of the
sector. Because Istanbul now has many shopping malls, almost 100,
it seems quite profitable for investors to invest in developing
districts in Istanbul or other cities in Turkey. Considering the
new law to be expected to come in to force in 2014, the retail
sector and shopping malls will have standards so that sector will
be more modernized.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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