Turkish Statistical Institute (TUIK) announced the Construction Cost Index for February 2022. According to TURKSTAT data, the construction cost index increased by 2022 percent in February 5,73 compared to the previous month and by 90,27 percent compared to the same month of the previous year.
Giving information about TUIK data, Real Estate Consultant Gülcan Altınay said, “Compared to the previous month, the material index increased by 7,56 percent and the labor index increased by 0,23 percent. In addition, the material index increased by 113,27 percent and the labor index increased by 41,38 percent compared to the same month of the previous year.
Building construction cost index increased by 5,82 percent compared to the previous month and by 87,91 percent compared to the same month of the previous year. Compared to the previous month, the material index changed by 7,82 percent and the workmanship index by 0,10 percent, while the material index increased by 110,44 percent and the labor index increased by 41,29 percent compared to the same month of the previous year.
The manufacturer is undecided.
Stating that investors have difficulty in building new housing due to construction costs, Altınay said, “There have been very serious increases in the last 1 year. This forces investors to build new houses. Due to the new houses that cannot be built, the prices of the houses in stock are increasing. In 2021, the sales prices of the houses for sale increased by 90 percent and the rental prices increased by 50-100 percent. These increases are expected to continue,” he said.
'Fear of not being able to finish if I start'
Pointing out that housing construction has slowed down due to increasing costs, and that the contractors are worried about 'I can't finish if I start' for new projects, Altınay said, “Investors who are worried that they can buy a new one instead of the finished material find the solution in renting a warehouse. Many investors want to rent warehouses and stock the products they will use. Recently, there has been a serious demand for this issue. We have had many customers in this regard in the last month. Our customers are working on our door with demands for warehouses to store their products for 1 year, as prices are constantly increasing. The companies from which they buy products give one-year product sales, but they state that they will not store it.”
They have a hard time finding vacancies.
Noting that even though the annual warehouse fees are high, the investors are profitable in the profit-loss balance, Altınay said, "For example, if the investor is going to make a profit of 10 million, he does not see any problem in spending 250-300 thousand TL for a warehouse."
However, although investors have turned to warehouses, it is not easy to find warehouses. On the subject, Altınay said: “It is very difficult to find an empty warehouse. Because the e-commerce sector has grown in the pandemic and the factories have increased their production recently, great attention has been paid to the warehouses. Due to the high demand, most of the existing warehouses were rented. We're having a hard time finding alternative options. Some of the industrialists with large factories are downsizing their fields and renting out some of their existing factories as warehouses.”
There is no place left in Istanbul
Noting that there are no warehouses for rent in Istanbul, Altınay said, “Those who cannot find warehouses in Istanbul head to neighboring cities such as Tekirdağ and Edirne. Therefore, Çatalca, Silivri, Selimpaşa, Çerkezköy and Çorlu line is in great demand”.
Altınay gave the following information about prices:ÇerkezköyCurrently, we can rent a 10 thousand square meter factory in Çorlu, Ergene region for 300-350 thousand TL. It is around 10- 400 thousand TL for a factory of 500 decares in this Hadimköy region.”
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