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The construction sector is having difficulties in accessing imported construction materials due to currency fluctuations. It is noted that housing prices will fall by 15% with the use of domestic materials instead of these products whose costs are increasing significantly.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - The Turkish construction sector took action to successfully pass another important test. In this context, the Ministry of Environment and Urbanization started to work to meet the needs of the sector from 100% domestic resources instead of imported construction materials. In the statement made on the decision by YapıRadar.com, the project data and demand bank created for the exchange of goods and services between suppliers and contractors, it was stated that the construction sector may accelerate again with the increase in the localization rate.

“Real estate prices expected to fall by 15%”

Stating that imported products directly affect construction costs and housing prices, YapıRadar.com General Manager Devrim Ünal Saygın said, “The construction sector is a sector where millions of people eat bread, which includes more than 400 business branches. During the Covid-19 process, construction companies had problems supplying products when the borders were closed. Our sector was very affected by the fluctuation in construction material prices in the first half of the year. Supporting domestic production, using domestic materials instead of imported construction materials, will also directly affect house prices, which can change by up to 15%.”

Construction materials imports decreased by 14.5% compared to last year

Drawing attention to the fact that construction materials imports remained below June, according to IMSAD's July 2020 data, Devrim Ünal Saygın said, “Construction materials imports totaled $543 million in July, down 14.5% from the same period a year earlier. The average unit price of imports rose to $ 2.84 / kg in July. In the same period last year, this figure was recorded as 2.79 dollars/kg.”

Construction materials cost increased by 6.66% annually with the pandemic, the solution is on digital platforms

Noting that the construction cost index increased with the effect of the pandemic period according to TurkStat (TÜİK) data, Saygın said, “The materials index also saw an annual increase of 6.66 percent. As suppliers look for new ways to cut costs, they have also had to deal with problems such as new customers, visibility and inadequate offers. But the solution to all these problems is possible with digital platforms. As YapıRadar.com, we follow about 20 thousand projects per year on average, we create a performance bridge between suppliers and contractors. In this way, construction companies, from the project stage to the completion stage, reach and receive offers from supplier companies by requesting all kinds of goods and services purchases in their projects through the platform. Thus, long-time and expensive purchase processes are completed at affordable prices and in short periods of time.”