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Fatih Fil, businessperson and founder of Filoglu Group, pointed out that housing costs are more than the increase in house prices and said, “If you start a construction now, you have to take the costs into account. We cannot build a new house with the same characteristics as the income of the house we sell. This is reflected in housing prices.”

*** This release is originally published in Turkish.
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ISTANBUL (TR) - Housing prices have been rising with a remarkable momentum in recent months. This situation, which is experienced throughout the country, affects both housing producers and consumers negatively. Construction costs are also increasing. According to the data of the Turkish Statistical Institute (TUIK), the cost inflation of housing manufacturers was approximately 22 percent. Inflation in rebar exceeded 100 percent. Inflation of more than 70 percent in ready-mixed concrete and more than 50 percent in cement was announced. This is reflected in housing prices. According to the Housing Price Index announced by the Central Bank, house prices increased by 31 percent in Izmir, 28 percent in Istanbul and 27 percent in Ankara on an annual basis. These increases, which started with the pandemic, reached record levels with the effect of the rise in exchange rates. 

“The housing manufacturer and the consumer are also right”

Fatih Fil, the founder and businessman of the Filoglu Group operating in the construction and real estate sector, evaluated the increase in housing costs and prices. Stating that they are closely monitoring the financial developments in the sector, Fil said, " The increase in house prices is directly related to housing costs. For example, the cost of a house we built in 2020 has increased by more than 100 percent this year. In this case, the account at home does not correspond to the bazaar! The housing manufacturer is suffering losses before the construction of the housing it sells from the plot is completed. If house prices do not increase, the costs cannot be met; when prices rise, consumers postpone their plans to buy a house. In fact, the housing manufacturer and the consumer are also right.”

“The share of dec decoupage costs in housing costs varies from 40 to 60 percent”

Construction and real estate projects in Istanbul and the Marmara region filoglu creating many regional groups, stating that they were impressed from negative inflation, housing costs and housing Fatih Elephant, the following expressions used in the construction of the main cost items in annual real estate price increases, inflation, and the increase in the index on the crest of it. Among these costs are many pencils, from decoupage to crafting, from cement to iron, from paint to wood joinery. The share of land costs in housing costs dec dec from 40 to 60 percent. General construction materials, labor and installation materials are also among the items that most affect builders after dec decoupling costs.”

"Costs are higher than house prices”

Fatih Fil continued: "As a general rule, home builders are usually held responsible for increases in real estate or house prices, but this is not the case at all. Along with these costs that I mentioned, when we overlap the costs that do not seem to be marketing, house price increases often fall below housing costs. Costs have increased by almost two times more than the dollar and inflation. So, if we compare housing prices with construction costs, the costs are more.”

Fil shared the following information: "As one of the industry's members, we are constantly calculating costs and sales. Over the past 1 year, iron prices have increased by more than 110 percent. There is an increase of about 70 percent in ready-mixed concrete. There is an increase in PVCs of more than 250 percent... if you start construction now, you have to take these costs into account. There are such costs that we are surprised. We cannot build a new housing with the same characteristics as the income of the housing we sell. This is reflected in house prices.”

“Housing loan campaigns should be organized”

Stating that these increases caused stagnation in house sales, Fil stated that some measures should be taken. Pointing out that housing loan campaigns should be organized under the leadership of public banks, as last year, Fil said, “Housing loan interests should be below 1 percent. There is a mass of consumers waiting to buy housing, and this mass is waiting for housing loans to fall. In order to revive the real estate sector, housing loan campaigns, which had a positive impact on the sector last year, should be organized this year as well. This positive effect will keep the industry alive.”

Who is Fatih Fil?

Fatih Fil was born on 25 November 1970 in Sakarya. He completed his high school education at Sapanca Vocational High School. He graduated from the USA Newport International University online education Civil Engineering Department. In 1993, he laid the foundations of the Filoğlu Group company, which he owned. Fil, which is involved in local politics together with the company operating in the construction, excavation, automotive, mining, tourism and service sectors in Sakarya and Izmir, is known for the support it gives to sportsmen and social responsibility projects. Fil explains his philosophy of life, “Work and discipline are everything. If your work shift ends, life ends.”