The change of rents in shopping malls from foreign currency to TL accelerated the exit of foreign investors from the market. AYD President Nuri Şapkacı said that they need new investments.
High The share of foreign capital in shopping center investments, which was stated to have slowed down due to investment costs and practices in lease agreements, also decreased. Nuri Şapkacı, Chairman of the Board of Directors of the Shopping Centers and Investors Association (AYD), noted that the most important problem in the sector, where foreign retail brands made their debut one after another, was the legal problems in the field of leasing, and said: “Our sector, which has an investment volume of 50 billion dollars, provides employment for 2.1 million people. Recently, our foreign investment rate has decreased from 30 percent to 18 percent in the total portfolio. This is the share of foreign investors after the rents were converted from foreign currency to TL in 2018. Total 50 billion dollar “It decreased to 8 billion dollars,” he said.
LEGAL REGULATION IS A REQUIREMENT
In his speech at the AYD Shopping Economy Summit, which was held for the 14th time this year, Şapkacı noted that it was seen that there was a need for new investments in the sector and that it was of great importance to meet international norms and standards, and continued: “We believe that our country has a great potential for commercial real estate and with freedom of contract. We believe that investments will increase. I think that if we bring and implement international norms to Turkey, we will attract significant investments to Turkey. In periods when inflation is high, it becomes difficult for investors to make decisions. Inflation bowed its head. “After it gradually decreases, there is no reason not to make investments in Turkey.” FİBA CB CEO and Board Member Yurdaer Kahraman also stated that one of the most important issues is foreign investment and said, “We need to keep foreign investment in Turkey.”
103 percent increase in turnover:
Providing information about the sector in his speech, AYD President Nuri Şapkacı said, “Our shopping centers managed to overcome the difficulties of the pandemic period, and although there was a slight downward trend in November, they achieved a 103 percent increase in turnover at the end of the third quarter of 2023 compared to the previous year. “While our visitor numbers increased by 12 percent compared to last year, there are also significant increases in sales in terms of units,” he said.