Emlak Kulisi, a Turkey's real estate newspaper, listed the key problems the Turkish construction sector is experiencing now.
Problem No. 1: industry cutdown
In 2019, the construction industry of the Republic experienced a sharp decline (by 8.6 percent) due to the political situation. Construction expenses decreased (by 9.8 percent), amounting to 581 billion liras in 2019. The share of the construction industry in national income decreased by 0.7 percent in 2019 and amounted to 6.5 percent. At the same time, construction costs increased during 2019 by 11 percent, labor costs increased by 25.4 percent, and material costs - by 5 percent. The average annual employment in the Turkey's construction industry decreased by 253 thousand people and amounted to 1.59 million people in 2019. The current level of employment in the construction industry has been the lowest in recent years.
Problem No. 2: a sharp decline in building licenses
Another significant problem the industry faced in 2019 was a sharp decrease (by 14.5 percent) in the number of construction licenses issued. The number of permits for housing construction fell even more critically - by 54 percent. In total, in 2019, the permits were obtained for the construction of 730,585 apartments.
Problem No. 3 (solved in 2020): falling property sales in Turkey
The decrease in home sales was being observed in Turkey for two years in a row. In 2019, sales fell by 1.9 percent compared to 2018. In total, during 2019, more than 1.3 million residential properties were sold in Turkey, and real estate prices grew at an annual rate of 9.93 percent. However, now in Turkey there is an unprecedented boom in real estate sales caused by the mortgage campaign. Experts predict that the growth in demand for housing in Turkey will continue in 2021.