Istanbul retains strategic role in regional logistics

ISTANBUL

Rising geopolitical tensions, shifting trade policies and higher operating costs are prompting companies to redesign their supply chain strategies, daily Milliyet reported, citing Cushman & Wakefield’s Global Industrial & Logistics Dynamics 2026 study, which examines 135 industrial and logistics markets worldwide.

The report says logistics real estate is increasingly being viewed as a source of strategic competitive advantage rather than simply an operational necessity.

The report states that global trade has entered a period shaped by structural uncertainty. Geopolitical conflicts, energy supply risks, climate-related events and labor shortages are driving companies away from single-hub supply chain models toward more flexible and diversified networks.

Within the Europe, Middle East and Africa (EMEA) region, Istanbul was identified as one of the leading logistics markets despite global and regional cost pressures. The city continues to serve as a key link in European supply chains, while its geographic location and access to multiple markets remain important advantages for investors, even as high inflation and rising living costs have pushed labor expenses above the regional average in Türkiye.

The Istanbul logistics market serves as a regional hub thanks to its strategic location linking Asia and Europe, a rapidly growing e-commerce sector and increasing foreign trade volumes. Istanbul’s most significant advantage is its strategic position. The city is recognized as a critical multimodal transportation hub connecting Europe, the Middle East and North Africa (MENA) region.

Air transport provides important support in this regard. Istanbul Airport continues to increase its share of global air cargo operations, while Turkish Airlines is making a growing contribution to this development. Railway infrastructure investments are another supporting factor, with plans to promote a dedicated freight transportation corridor.

According to the report, global logistics rents have increased by an average of 36 percent since 2020, with annual rent growth continuing in 61 percent of the markets surveyed. In Europe, constrained supply in countries including the United Kingdom, France, Portugal and the Nordic region continues to support rental growth.

The study also highlights artificial intelligence-based planning systems, automation solutions and renewable energy investments as key drivers of change in the logistics sector. As electric vehicles, automation technologies and energy-intensive operations become more widespread, energy costs are expected to play an increasingly important role in facility selection decisions.

The report says companies that diversify their supply chains, integrate technology into operations and establish long-term positions in strategic locations will be best placed for future success.