Developers complain about high costs

ISTANBUL

Construction companies are facing high input and land plot costs that prevent them from launching projects, says Tahir Tellioğlu, the president of the Contractors’ Confederation (İMKON).

Companies have not been able to build enough houses because of cost-related problems, Tellioğlu said, calling on the government to address those pressing issues.

Home production has declined by 650,000 to 700,000 over the past three years, according to Tellioğlu.

“The construction sector has been struggling with rising costs for some two years... The land plots cost at least 2 million to 3 million Turkish Liras, depending on the location,” he said in a statement.

He argued the increase in the prices of key construction materials, such as cement and glass, was well above the increases in the inputs used to produce them.

“There are not enough land plots to develop projects. Higher costs and other factors have caused property prices and rents to skyrocket.”

Tellioğlu added that at least 900,000 houses should be built each year to meet the demand, but supply has been on the decline, which makes homes unaffordable for low- and medium-income groups.

The construction cost index increased by 62 percent in July from a year ago, the latest official data showed.

Construction materials and labor costs rose by 47 percent and 112 percent year-on-year, respectively.

He also complained about the labor shortage. Stressing that skilled workers are leaving Türkiye to get employment in other countries, Tellioğlu urged restrictions be apllied to some skilled jobs while calling on authorities to allow short-term employment to foreign workers to fill the gap.