Turkish contractors undertook 132 new projects abroad

The total amount of 132 new projects undertaken by Turkish contractors abroad in the first 6 months of this year was $4.6 billion.

The Turkish Contractors Association (TMB) has published the “July 2022 Construction Industry Analysis Report” titled “Inflation Has Forgotten Growth in the World, Recession Risk is on the Agenda”.

In the report, it was pointed out that Turkish contractors undertook 132 new projects worth $4.6 billion abroad in the January-June 2022 period, emphasizing the need to be more active in existing markets and to accelerate the search for new markets. In the report, it is stated that the United Arab Emirates (UAE) and Saudi Arabian markets, where the sector’s experience is high, stand out with the latest developments in foreign policy. It was reported that the sub-Saharan Africa region, including Nigeria, the Republic of South Africa, Tanzania and Ghana, is also closely followed.

In the report, it was stated that in Russia, where a record level of $11 billion was undertaken last year, the ongoing projects amounted to $20 billion, and it was reported that there were disruptions in joint projects with European companies in the country due to the war. The report underlined that the uncertainties caused by the war caused the sector to enter a waiting period in the leading market, and it was pointed out that 4 new projects with a total amount of $396 million were undertaken in Russia in the 6 months of this year, according to the data of the Ministry of Commerce.

“It is getting harder and harder to own a house for the middle and low-income group”

In the report, it was stated that the activities in the construction sector came to a halt again due to the decrease in investments and increasing input costs. It was emphasized that the cost increases continued to put upward pressure on housing prices. The report noted:

“In order to return to growth in the sector, there is a need for a revival in construction investments and a solution to the problem created by the unpredictable increase in input costs. In particular, public investment programs are needed to guide in this context. In this context, it is beneficial to prioritize the public investment program and to prefer projects that will create economic and social added value. Another need regarding the economic difficulties of the sector is to at least reduce the withholding rates in the increased withholding tax and value-added tax to their previous levels. With the weighted effect of the high-cost increases experienced, with the increase in housing prices, a cautious even regression is observed in new housing production. In market conditions where imbalances are observed with the weighted effect of the transition from an extraordinary period, it becomes increasingly difficult for the middle and low-income groups to own a house. Solutions are needed that can finance construction manufacturing. The efforts of the Ministry of Environment, Urbanization and Climate Change to reduce land costs, which have a high share in housing prices, are of great importance in this respect.”

Source: Trthaber / Translated by Irem Yildiz

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