The Turkish Contractors Association (TMB) proposed the implementation of alternative real estate financing models with low-interest loan campaigns for housing sales.
According to the statement made by the TMB, the Construction Sector Analysis Report prepared by the association for April was published.
In the report, which pointed out that the input costs in the construction sector increased, it was reminded that the Construction Cost Index of the Turkish Statistical Institute (TUIK) increased by 27.8% in January and 27.6% in February on an annual basis.
In the report, it was stated that there are serious financial and operational problems in the construction sector due to the rapid change in market conditions, fluctuation in the exchange rate, and the new type of coronavirus (Covid-19) epidemic.
In the report, which stated that the increase in housing prices that started last year continued in parallel with the rise in construction costs, it was noted that housing sales decreased by 22.9% in the first quarter of this year compared to the same period last year.
In this context, the report stated that it is important to implement low-interest loan campaigns especially for first-hand housing sales to support the sector, “For a longer-term, it is recommended to develop alternative real estate financing models and to make the housing account application effective especially for low-income earners, taking into account the revitalizing effect of the revival in the housing segment in many sectors.”
Source: NTV / Translated by Irem Yildiz