The construction sector of Turkey grew by 2.8%
In the Report on Real Estate Sector of Turkey and the World prepared by the Association of Real Estate Investment Companies for the first quarter of 2012, the decelerating growth in the world economy and real estate sector is stressed. It is highlighted that the growth rate of Turkey in the first three months of 2012 decelerated with the impact of this deceleration and the precautions to cool the economy, however it realized as 3,2% before the United States, Euro Zone and Japan. The deceleration of Turkish economy growth was reflected on all sub-sectors, while it is stated in the report that the real estate sector completed the first quarter of 2012 with a growth by 2.8%. Işık Gökkaya, the President of GYODER, pointed out that it is expected Turkish construction sector recovers especially in the last two quarters in line with the general state of economy and the significant developments in the sector, achieving the envisaged growth rate.
The Real Estate Sector of Turkey and the World 2012 First Quarter Report prepared by GYODER (Association of Real Estate Investment Companies) is announced. In the report where the figures of the first quarter of 2012 are compared year over year, the decelerating growth in the world economy is highlighted. It is pointed out in the report that the economic growth rates in the first three months of 2012 were realized as 1,9% in the US, 2,7% in Japan and %-0,1 in Euro Region and it is emphasized that the global deceleration also became influential in China and the growth rate in this country inclined to 8,1%, as well.
The report remarks that the precautions for cooling economy became influential as of new year and it is pointed in the report that the growth rate of Turkish economy decelerated in the first quarter of 2012 and realized as 3,2%, while this recession impacted all sub-sectors. In the GYODER report, it is stressed that regarding this deceleration, the root cause of which is the tightening monetary policy implemented by Central Bank, ‘high interest rates’ and ‘lower liquidity’ realized as of the second half of 2011 are also determinants. The report also draws attention to the continuance of the recession in current deficit and inflation that are the primary objectives of the precautions to cool the economy in the first three months as well and it is commented that it is too early for a permanent recovery and this is why Central Bank’s relatively tight monetary policy will be implemented for a longer time, and accordingly, growth in economic activities will remain limited.
It is indicated in the report that in spite of the limited increase and stagnancy in the world real estate sector, Turkish construction sector that has decelerated in parallel with the economy in general grew by 2,8% in the first quarter of 2012 year over year. It is also noted in the report that the recession in construction expenditures by public sector affected this deceleration, emphasizing that private sector expenditures also decelerated. In the report where it is stated that high interest rates for credits limit the demand for credits, causing a general easing in interest rates, the commercial real estate was not affected by the deceleration in the economy. In the report, it is stressed that while shopping mall and hotel investments still continue, it is not experienced any problem with respect to leasing demands and occupancy ratios.
GYODER President Işık Gökkaya, whom evaluated the report, uttered that Turkish construction sector achieved a predictable and prudent growth with the impact of the deceleration in the economy general, the precautions to cool the economy, which became effective especially as of new year and the natural effect of the high level in the sector at the end of 2011. Stating that the first projects of the urban transformation that will affect the real estate sector affirmatively and to a great extent have been just introduced, it is still conducted preliminary preparation works for the Disaster Code and expected the complementary elements such as residence permit and loan extension in the regulations regarding property sales to aliens, he pointed out that “It is expected some developments that will provide decrease in the mortgage rates, yet increase in the extension rate. It is envisaged that all these developments are effective in the market and in line with the developments in the general economy; Turkish real estate sector is expected to shift up and accelerate especially in the second half of the year, achieving the growth rate predicted at the end of the year.
The Real Estate Sector of Turkey and the World 2012 First Quarter Report in Figures:
- In the US, there is activation in the construction expenditures and limited increase in the house sales, while the commercial real estate prices index is stabilized.
- In European Euro sector, the shrinking in the construction sector still continues.
- The construction sector of Turkey grew by 2.8%.
- The number of the obtained building licenses realized as115.637.
- Annual growth rate of housing credits realized as 11.5 %.
- New housing credit provided in the first quarter is 4.78 billion TL.
- Per month interest rate of housing credit declined to 1.25 % in average.
- House sales declined by96.092.
- There occurred a limited in crease in housing prices and house rents.
- With 5 shopping malls opened, total number of shopping malls reached up to 284 and total size of rentable areas up to7.49 million m2.
- In Istanbul office market, low void ratio for MIA region type A and B continues to exist. Rents are stabilized.
- Stability in rents for building of logistics and shopping malls continues to exist.
- The number of the real estate investment trusts traded at Istanbul Stock Exchange increased to 24. Market Value occurred as 13.8 million TL.
- Real estate selling to foreigners became 557million dollars and direct foreign capital investments became 149 million dollars.
