The construction sector, one of the important pillars of the Turkish economy, alarms. The increase in exchange rates and inflation caused the construction industry to go into a serious crisis. Up to 150 percent price increase in construction materials brought the construction industry to a standstill. While the price increases from iron to concrete, from cement to doors and windows make the contractors black and white, it is pointed out that housing prices will increase depending on the problems experienced.
The construction industry, which has an important share in the Turkish economy, has come to a standstill. Turkey, which is heavily dependent on abroad in construction materials, is experiencing a serious crisis due to the increase in inflation. It is stated that construction costs have increased up to 35 percent. On the other hand, housing prices are expected to rise significantly, depending on the price increases of up to 150 percent in construction materials. Speaking to the National Gazette, representatives of the sector explained the problems in the housing market and stated that an economic crisis based on the construction sector is at the door if it is not intervened.
"HOUSING SUPPLY DECREASED, WE EXPECT SERIOUS INCREASES"
Hatice Kolçak, Head of the Real Estate Commission of the Consumer Problems Association, stated that the inflation increases in the world and in Turkey caused an increase in the prices of construction materials, "This situation increased the costs in the construction sector. Now, not only domestic price increases but also worldwide price increases are effective. Construction costs rose from 20 percent to around 30-35 percent. This closes the front of the industry. Now, prices will increase in new construction projects. The construction industry has no popularity 4-5 years ago. This means a decrease in new housing production. Due to the increase in costs, construction companies do not have a lot of appetite. Most companies want to finish their jobs as soon as possible. Because the increases in construction materials are already continuing. This trend is making the construction industry, which is already losing its popularity, even more difficult. We expect serious price increases in new and second hand houses," she said.
"THE CONSTRUCTION SECTOR HAS ARRIVED TO A STOPPING POINT"
Elâzığ Construction Contractors Association Chairman of the Board Av. Osman Avcıl, on the other hand, expressing the problems of the companies in the construction sector, "The construction sector, which is the locomotive of many sub-sectors and creates a large area of employment, has come to a standstill. There was an average 150 percent price increase in construction materials within a year. Cost increases in the construction sector were reflected in housing prices. Almost all construction companies are struggling to see the future now. It is very difficult for the construction industry to make new investments in this environment. Shrinking or ending of the construction sector means an inexcusable unemployment problem. Solving the problems, troubles and dilemmas of construction companies is important for the whole of Turkey. What needs to be done for the benefit of the national economy is to prevent the bad progress in the construction sector as soon as possible," he said.
TON OF IRON RAISED BY 121 PERCENT
High inflation hitting the most used main materials in the construction industry reaches 150 percent. The increase in the main item costs in construction construction becomes clearer when the prices of 2020 and 2021 are compared. According to this, iron, which was 3 thousand 240 TL per ton in 2020, increased to 7 thousand 179 TL in May 2021 and increased by 121 percent. While the cubic meter price of C25 ready-mixed concrete was 150 TL in 2020, it increased by 86 percent in May 2021 to 280 TL. While a bag of cement was sold for 13 TL in 2020, it increased by approximately 60 percent and became 22 TL in May 2021. Last year, a cubic meter of aerated concrete was sold for 200 TL, but it increased by 35 percent to 270 TL by May 2021.
BY-PRODUCTS OF CONSTRUCTION MATERIALS PRICE ALSO RAISED
By-products used in the construction sector also increased at a high rate. In May 2021, the cubic meter of raw MDF increased by 82 percent compared to last year, increasing from 145 TL to 265 TL. One-length ceiling C profile was 7.5 TL last year, but increased by 140 percent in May 2021 to 18 TL. Silicone, whose bucket was 216 TL in 2020, increased by 34 percent as of May 2021 and became 291 TL. The meter of the PVC door window increased by 73 percent in May 2021 compared to the previous year, from 48 TL to 83 TL.