Energy costs continue climbing. Consumer behaviour has shifted fundamentally. Traditional retail real estate models are under sustained pressure that shows little sign of easing.
Yet halfway across the continent, an emerging market has been quietly developing a comprehensive approach to these very challenges.
Turkey’s retail real estate evolution offers valuable insights that European investors are beginning to recognise. Over two decades, Turkish developers have navigated economic volatility that would challenge most markets: significant inflation, currency fluctuations, regulatory changes, natural disasters, and a global pandemic. Rather than merely surviving, they’ve grown by fundamentally rethinking what retail spaces can achieve.
Where European centres work to maintain footfall, Turkish developments have broadened the role of retail space. Modern shopping centres in Istanbul and Ankara function as community destinations where families gather for dining, entertainment, and social connection alongside traditional shopping. This isn’t incidental, it’s deliberate design for a digitally influenced retail landscape.
This evolution parallels what European markets are pursuing, with an important distinction: Turkish developers were compelled to innovate under pressure. The approaches developed through necessity have created adaptable models that European markets are now actively studying as they address their own challenges.
The similarities are striking: European retail landlords face declining high street performance and shopping centre occupancy challenges. Turkish developers encountered comparable pressures earlier and more intensely, and developed responses. They learnt to diversify revenue streams, build adaptability into designs, and create experiences that complement rather than compete with online retail.
The financial strategies emerging from Turkey are equally relevant. International partnerships have proven essential, bringing both capital and expertise in risk management and strategic planning. Companies like Rönesans Gayrimenkul Yatırım demonstrate this approach. Their partnership with Singapore’s sovereign wealth fund GIC shows how strategic alliances can provide stability in dynamic markets. Similar models are gaining traction across Europe, where joint ventures with international capital have become important for major retail developments.
Turkish developers increasingly recognise that long-term success depends not only on financial performance but also on environmental leadership. Advanced sustainability initiatives are now key competitive differentiators. By committing to 100% renewable energy across all properties by 2030 and securing top international environmental certifications, Rönesans is aligning its assets with evolving ESG standards, while also attracting high-quality tenants.
This proactive approach to sustainability has attracted global brands looking for partners that share their environmental values, enhancing tenant quality and ensuring greater rental stability.
The international investment community has responded positively. Recent public offerings and international bond issuances from Turkish retail real estate companies reflect increased confidence in the sector’s transformation. For European investors seeking portfolio diversification, Turkey’s development offers both strategic insights and investment opportunities.
Erman Ilıcak, President Emeritus of Rönesans Holding notes: “Our work in the retail sector goes beyond constructing buildings, it’s about creating lasting value, fostering communities, and building trust. Embracing change isn’t enough; we strive to lead the transformation.”
For European retail real estate, adaptation has become essential. Turkey’s experience demonstrates that meaningful transformation is achievable, even under challenging conditions. The Turkish approach combines three key elements that European markets increasingly need: operational flexibility, strategic international partnerships, and comprehensive sustainability commitments.
As traditional retail models face ongoing pressure, European developers can benefit from studying Turkey’s methods. The solutions developed in Turkey’s competitive environment may well inform which European retail centres succeed in the evolving landscape ahead.