Real Estate

The cost of a 100 square meter house in Istanbul reached ₺1 million: Kiptas GM Kurt

Kiptas General Manager Ali Kurt drew attention to the rising costs in the construction industry. He drew attention to the supply problem he experienced. Kurt, who participated in the Bloomberg HT broadcast, said, “Currently, construction costs have come between ₺8 thousand 500 and ₺10 thousand per square meter, especially in Istanbul.”

Kiptas General Manager Ali Kurt drew attention to the supply problems in the sector and the rising construction costs in Istanbul.

Participating in the Bloomberg HT broadcast, Kurt said, “Construction costs have reached between ₺8 thousand 500 and ₺10 thousand per square meter, especially in Istanbul. Currently, the cost of a 100 square meter house is ₺1 million. When you look at it like this, we have a big problem as an industry. Our expectation is to take actions to reduce construction costs. VAT on construction input costs can be reduced in order to make positive discrimination especially in social housing or urban transformation projects. Giving incentives to industrial establishments producing construction materials. Unless we reduce costs, we will continue to grapple with the housing crisis.”

Kurt continued:

In Turkiye, especially in the last 20 years, the most reliable investment tool has been real estate. If we take actions to prevent real estate from being used as a temporary investment tool and reduce construction costs, we can solve this housing crisis. This can be done over a period of time, not in a day.

There is a serious problem in the supply chain. Sometimes you can’t find a product with your money, because the movement in the market creates a distrust of those who supply the product. While the dollar is up 10%, iron is up 20%; because there is a concern about not being able to replace it. We need to encourage production. If we can encourage material production and reduce foreign dependency, we can control costs.

Source: Bloomberght / Translated by Irem Yildiz

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