Since the early 2000s, Istanbul’s leading shopping streets have undergone a long and dynamic transformation in parallel with the rapid evolution of Turkey’s retail market. Although the process did not unfold in a fully structured way, the growing interest of retail brands has been the driving force behind this ongoing change.
During this period, Turkey’s steady economic growth and resulting price stability made commercial real estate investments more predictable. This environment encouraged retailers to strengthen their presence not only in shopping centres but also on high streets, where the demand for top-tier retail spaces became increasingly evident.
Consequently, shopping streets—previously lagging far behind shopping malls—began attracting both institutional and individual investors. Foreign funds entering Turkey through direct investment particularly focused on prestigious shopping streets such as İstiklal Street and Nişantaşı’s Abdi İpekçi Street. These acquisitions not only drew international brands to these areas but also inspired local investors to pursue new projects of their own.
By the 2010s, the balance of Turkey’s retail market began to shift once again. The rapid expansion of shopping malls led brands to adopt a more selective approach when choosing between mall and street locations. Meanwhile, consumer behavior started to change—experience-driven shopping began to dominate. As a result, brands increasingly preferred street locations that allowed them to connect directly with customers and express their identities through concept stores.
At the same time, accelerated urban transformation boosted the renewal of shopping streets and expanded the stock of high-standart retail spaces. Although still insufficient today, these developments have helped prime shopping streets establish stronger identities and provided organized retail with greater presence in these locations.
In Istanbul, prime shopping streets such as Bağdat Street, Abdi İpekçi and Teşvikiye Streets in Nişantaşı, and İstiklal Street have evolved into more than just retail streets—they’ve become prestigious destinations offering a refined and distinctive shopping experience.
Throughout this transformation, property owners and investors have made substantial investments to upgrade both their existing and newly acquired assets. Their main goal was to create premium real estate stock that meets international standards, allowing brands to fully realize their concept store designs and deliver elevated shopping experience to their customers.
By 2016, this real estate development trend had spread from Istanbul to other major cities such as Ankara and Izmir. In Ankara’s most vibrant retail destinations like Tunalı Hilmi Street, Kızılay Atatürk Boulevard, as well as Izmir’s Alsancak, Karşıyaka Kemal Paşa Street, and even Gül Street, we observed a significant volume of property transactions and notable investment activity in the market —albeit not on the same scale as Istanbul—by a diverse range of investors, from local individuals to international funds.
After nearly 15 years of consistent growth, the period between 2016 and 2019 brought a new wave of economic instability. Sharp currency fluctuations, followed by legal restrictions on foreign currency leases under the Law on the Protection of the Value of the Turkish Lira, significantly extended projected return periods for investors—resulting in major profit losses.
To put it in perspective, market price, including prime rents, depreciated by nearly 65–70% within just three years, eroding property asset values considerably. Some investments made during this time remain undeveloped even today as a result of these challenges.
Another persistent issue lies in the fragmented ownership structures of Turkish shopping streets. Unlike Oxford Street in London, for example, they cannot be managed under a single entity. Moreover, local authorities (municipalities etc.) have yet to take a professional approach to their management, and investments continue to occur on an entirely individual basis. Despite the considerable investment and progress achieved over the years, the lack of proffessional management has prevented the emergence of a strong and cohesive architectural and brand identity— one designed to function at the same standard as shopping malls.
As we have often emphasized, shopping streets must also build their own brand identity. To achieve this, local authorities should collaborate with professional consultants and embrace more organized management models similar to those used in shopping malls.