Due to the pandemic and inflationary environment, the price increases of up to 2-3 times in the prices of construction materials and land caused stagnation in the construction sector.
Noting that according to the TUIK data released last month, there was a 40% contraction in housing sales, the Contractors Federation (MÜFED) President and İZTO Board Member İsmail Kahraman said that they expect support as the industry.
Noting that exorbitant price increases were observed especially in construction materials such as iron, concrete and glass, Kahraman said, “With the pandemic, there was a significant contraction in the construction sector. Even though there was some movement in 2020, contractors had difficulty in producing projects due to exorbitant price increases. In 2022, records were broken in terms of construction input costs. Prices need to stabilize. According to the latest November TUIK data, there is a 40% decrease in sales compared to last year. Because the purchasing power of the citizens has also decreased. In 2023, we will be relieved if the government takes successful steps in the fight against inflation and exorbitant prices. We have a selection process before us. Regardless of the results of this election, economic problems will continue to await us," he said.
HOUSING LOANS SHOULD NOT BE LIMITED
Emphasizing that the new housing loan packages, which are expected to be announced in the first months of 2023, will be beneficial for the sector, MÜFED President İsmail Kahraman continued as follows: “Having an upper limit on housing loans will not bring much benefit for the sector. If a loan facility of at least 50-60% of the housing prices can be offered, then it will be beneficial. There were KGF work done in the past and completion loans applied before. Similar supports should be put into use in the new year. Additional support is required to complete the project. But these completion credits are said to be over as of the day they are released. Resources need to be well distributed to the market, regardless of large or small companies. We want the construction material prices, which increase the input costs, to be followed by the relevant authorities in an effective and result-oriented manner.”
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