Big increase of construction costs in Turkey – “Important opportunity” to buy real estates in Turkey
The “Turkish Statistical Institute” explains the increases in construction costs over the three-month period.
The increase in construction costs for the three month period of July August and September compared to the same months of the previous year is 22,1 %.
The costs of iron and steel increases in that three months 58,1 %, 26,6 % of the heating costs, 25,4 % electric costs, 23,9 % in sanitary and 23,9 % in wood.
The increase of the construction costs is due to the increase of the exchange rate.
In addition to the increase of the material costs, also the labor work prices increase 11,9 %.
The increasing of the construction costs will lead to a rise in the new housing prices in Turkey.
There are many new constructions of residential buildings with apartments in Turkey.
But there are a large number of Turkey properties which are built by the old costs and they are awaiting for sale.
Housing producers are saying that the cost increases have still not been reflected in the housing prices and that the rise of the housing prices after the beginning of the year 2018 will be inevitable.
According to the report of Duygu Erdoğan from the Milliyet newspaper, who is closely following the developments in the real estate sector; "The sector representatives point out that the increase of the real estate prices has become 'inevitable' after high incoming costs. They call this time now the last months of the year as 'important opportunity'.
The increase of the construction costs will first lead to an increase in new housing prices, but finally the increase will affect the generally price line of real estates in Turkey.