Prepared by Association of Turkish Construction Material Producers (Türkiye IMSAD) as the umbrella organization of the sector, the ‘July 2018 Sector Report’ includes these statements: The current construction level shows a significant increase with the effect of seasonality in the second and third quarter traditionally. However, in the second quarter of 2018, the current level of jobs stagnated in May with the uncertainties created by the elections following the increase in April, and in June it decreased by 3.6 points compared to the previous month. In July, the current job level increased by 1.1 percentage points compared to the previous month. The level of current jobs is well below last years and the weakness in the business is the result of uncertainties in the economy, coupled with tightening of financing opportunities. It is expected that the economic policies will be effective in the movement of the current job levels.
Overseas contracting services give hope
In 2015, 2016 and 2017, there was a significant decline in contracting projects from abroad. In the first half of 2018, 84 projects were received and the total amount of these projects was 9.21 billion dollars.
Housing purchase by the foreigners at the top level for the last 6 years
In the first half of 2018, the purchase of housing by foreigners was realized as 11 thousand 816 and there was the highest purchase of housing in the last 6 years.
Post-election developments and expectations in the construction sector
In the report, informing that the new economy management is working on the medium term program, the 2019 budget and the emergency steps to be taken on first 100 days, it is emphasized that economic programs will be formed to explain the construction industry and construction materials industry. The report states that in the new period, there are problems accumulating in the construction sector and the expectations by the sector are as the following;
• Providing a healthier, sustainable real estate and housing claim in the new period,
• Rebuilding the balance between costs and prices and rents in the construction and real estate sector,
• Reconsidering reasonable levels at high interest rates that adversely affect producers and consumers, ensuring lasting stability in the Turkish lira,
• Improving the financial structure of firms in the construction sector and increasing access to finance.
