Over the past two years, construction costs have increased approximately threefold, according to the department analyzing the value of EVA real estate (EVA Gayrimenkul Değerleme). And for certain categories of materials – even more: iron has risen in price 4.5 times since 2020, and 2 times since 2021.
Moreover, prices vary by city, they grow fastest in Istanbul: for example, the tariff for iron in the largest metropolis was 3,235 Turkish lira (TL) in 2019, 3,460 – in 2020; at the same time, 7,490 – in 2021. Today, iron is priced at 16,000 TL.
The same hollow brick in 2019 was sold at 2.25 TL apiece; in 2020 - 2.55 TL, in 2021 - 2.90 TL; well, now its price is already 6.10 TL.
Commercial concrete has risen in price by 471%; the situation with other materials is similar, despite attempts by the authorities to regulate and «normalize» prices.
The negative impact on the cost of construction was caused by rapid inflation and currency fluctuations, intensified by the pandemic and the political and economic situation; but over the past two years, costs have been growing especially rapidly; labor costs are also increasing.
Which eventually resulted in a significant increase in housing prices.
Well, this, in turn, has made Turkey one of those countries where residential real estate prices are growing the fastest in the world.
We have already written earlier that the growth of tariffs for iron worries developers. The builders also protested against the increase in cement prices.