Housing prices to rise by 2nd half of 2010
14 December 2009
With the construction sector still feeling strong negative after-effects of the global financial crisis, housing prices in Turkey are at their lowest, yielding no profit to construction firms.
However, when existing stocks are depleted, prices will rise again by the second half of the coming year, Mesa Construction Group Board Chairman Erhan Boysanoglu said yesterday.
Speaking to the Anatolia news agency, Boysanoglu said the construction and real estate sectors are the first to be affected by economic crises and recover less quickly than other sectors. The negative impacts of the last financial crisis, which began in 2001, on the sector lasted at most a year, he said, adding that the recent global crisis, however, had impacted the sector more severely, meaning recovery would take longer.
"The floor area (of constructed buildings) decreased by 19.6% this year compared to the previous year. Building construction declined by 14.8% while the value of total construction decreased by 25.1%. The number of homes constructed fell by 17.2%. These are huge drops for the sector," he said. Housing sales fell due to the financial crisis, resulting in significant drops in housing prices, Boysanoglu stated.
The prices are now at their minimum, he added, explaining that most firms are exerting themselves to keep their doors open. The sector cannot sustain itself with these prices, however, and after depleting existing stock, prices will rise again by the second half of 2010, he asserted.
Source: ANSAmed
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