In 2019, the number of construction companies closed increased by 23%.

In 2019, the number of construction companies closed increased by 23%.
16 July 2019

2,820 construction companies closed in the first 5 months of 2019, according to data from the Union of Chambers and Commodity Exchanges of Turkey (TOBB). Experts say that the biggest share in the 23% increase in the number of construction companies closed compared to the same period of 2018 is that the cost increases in the sector cannot be reflected on house prices.

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

ISTANBUL (TR) - economic contraction in the world, Turkey has also affected the construction industry from the locomotive of the economy. In spite of the increase in housing investments of foreigners in 2019, the price increase due to the exchange rate difference in construction materials, the increase in land costs and the decrease in the demands of domestic investors caused the number of closed construction firms to increase by 23%. At the same time, the number of construction companies established in the first 5 months of 2019 decreased by 117% compared to the same period of 2018. Bahadır Construction Board Member Ümit Bahadır stated that the companies producing concrete rather than living spaces where people are at the forefront are closed one by one, and that construction companies that produce sustainable projects and those who make the right investments through housing will continue to earn as of September.

Ecek It will continue to provide investment in the right places

Umit Bahadir said that despite the contraction in the construction sector, there is still a great need for housing and that it can be met with the right investments. Mit We continue to produce housing that will bring vitality and employment to the national economy. In these days when everyone is directing their investments to liquidity markets, we see housing as an opportunity. As a result of this temporary contraction, we think that investors who are going to real estate will be profitable. ”

Importance of using local materials

Ümit Bahadır stated that there were problems in payments of materials received in dollars in the construction sector due to fluctuations in the exchange rate and said: maksimum Maximum comfort can be provided with domestic construction materials in the houses. We believe that dollar-based fragility can be minimized by supplying all construction materials from domestic production. We believe that sustainable projects are very important in infrastructure suitable for the housing culture of the society, in harmony with nature, energy and personnel dependence is reduced with infrastructure solutions. Mit Ümit Bahadır also stated that qualitative production is inevitable for the construction sector to breathe.

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55