Gulchin Barbaros Ak, Chairman of the Mersin branch of the Chamber of Civil Engineers (IMO Mersin), a member of the Union of Chambers of Turkish Engineers and Architects (TMMOB), assessed how the increase in prices for building materials affected the real estate sector.
The more than 50% increase in tariffs, of course, did not please, because it affects both real estate prices and the situation on the labor market. For example, housing construction costs increased by 62.94%, for building materials - by 50.49%, and for labor (salaries, etc.) - by 105.16% (according to the spring of 2023, compared with the spring of 2022). "This is driving up prices in the entire construction sector, especially in housing - in the segment of new buildings," Mr. Ak said.
Recalling that since the raw materials for the vast majority of building materials come from abroad, prices here also constantly change depending on the exchange rate of foreign currency. And not for the better for Turkey.
The situation in the labor market is also difficult: 3 out of every 10 engineers are unemployed. And if these engineers are women, then the unemployment rate is even higher here: 47.1%.
Earlier we wrote that the expected construction costs in Turkey will reach a trillion dollars. And, despite the fact that Turkish contractors are extremely in demand abroad, and their services are well paid - only in January-May 2023, the builders of the Republic of Turkey performed $6.5 billion worth of work outside the country in their profile - this does not solve the internal problems of the development market.