Turkish Contractors Association (TMB), which represents the leading organizations of the construction industry, which plays a locomotive role with the demand and employment power it creates for more than 200 sub-sectors in the economy, published the April 2024 issue of the Construction Sector Analysis Report, which is followed with interest by economic circles and the sector. In the analysis titled "Economy of Election, Choice of Economy", data regarding the global and national economy and the construction sector were evaluated.
In the Construction Sector Analysis Report of the Turkish Contractors Association (TMB) for the first quarter of 2024, the importance of President Recep Tayyip Erdoğan's statement that the projects of all municipalities will be supported by the government without discrimination after the 31 March 2024 Local Election and the four-year period that will pass without an election agenda. Emphasizing the process, TMB President Erdal Eren said, “In our country, which is an earthquake country, there is a need for urban transformation, structural regulations and infrastructure investments in almost all of our major cities. And it is very difficult to do these without the support of our state. "It will definitely be more beneficial for our ministries and municipalities to produce solutions to critical projects together." explanations were included.
Turkish Contractors Association (TMB), which represents the leading organizations of the construction industry, which plays a locomotive role with the demand and employment power it creates for more than 200 sub-sectors in the economy, published the April 2024 issue of the Construction Sector Analysis Report, which is followed with interest by economic circles and the sector. In the analysis titled "Economy of Election, Choice of Economy", data regarding the global and national economy and the construction sector were evaluated.
Structural regulations and infrastructure investments are needed
The April 2024 issue of the Construction Sector Analysis Report featured the interview made by Erdal Eren, President of the Turkish Contractors Association, on a television channel after the 31 March Local Elections. Emphasizing the importance of the next four-year period, which will pass without an election agenda, and President Recep Tayyip Erdoğan's statement that the projects of all municipalities will be supported by the government, without discrimination, after the election, Erdal Eren said, “In our country, which is an earthquake country, almost all of our big cities will definitely need urban transformation and structural transformation.” There is a need for regulations and infrastructure investments. And it is very difficult to do these without the support of our state. It will definitely be more beneficial for our ministries and municipalities to produce solutions to critical projects together. In these four years without elections, there will definitely be some painful prescriptions within the program that has started in the economy, together with the structural reforms. But in this four-year period, together with the support of our government, ministries, municipalities and non-governmental organizations, we will find a way to put our country on the right track. We have to find it.” he said.
5 percent of the 35-year contraction has been compensated
The report also draws attention to the obstacles facing the construction industry for 2024, saying, "Within the scope of savings measures, new projects will not be included in the country except in cases of necessity, the Price Difference Decree currently in force is insufficient, increasing construction costs due to geopolitical tensions and the increasingly deepening shortage of intermediate staff." The shortage continued to be one of the biggest obstacles to the sector in 2024. "The sector aims to overcome the bottleneck by focusing on foreign contracting services." It was said.
While it is reminded in the report that the construction sector grew by 2023% in the fourth quarter of 10,8, due to the impact of the reconstruction of the earthquake zone; The growth rate in the first quarter of 2023 will be increased from 4,5% to 5,3%, the second quarter growth rate will be increased from 6,2% to 7,2%, the third quarter growth rate will be increased from 8,1% to 7,8%, It was stated that it was revised to 2023. Thus, it was pointed out that the construction sector grew by 7,8% in 35, above the general economy, and said, "Although growth occurred for the first time in the construction sector after a five-year break, this rate could only compensate for 2023% of the contraction experienced by the sector. The real estate sector, on the other hand, exhibited a very slow growth of 2,7% in XNUMX.” statements were included.
In the report evaluated by the Turkish Contractors Association for the first quarter of 2024, the following findings regarding the construction sector were included:
New projects worth 4,3 billion dollars have been undertaken abroad: As of January-March 2024, 4,3 projects worth 40 billion dollars have been undertaken abroad by the Turkish construction industry. Thus, the international project portfolio size that the sector has reached since its opening to the foreign market with Libya in 1972 has reached a total of 136 billion US Dollars with 12.164 projects undertaken in 507,3 countries. In the first quarter of 2024, the country where the most work was undertaken abroad was Kazakhstan with 892 million USD, while Gabon ranked second with 807,4 million USD and Poland ranked third with 643 million USD.
Construction cost index increased by 67,87 percent: The construction cost index increased by 2024% in January 15,70 compared to the previous month and by 67,87% compared to the same month of the previous year. While the material index increased by 5,13% and the labor index increased by 41,95% compared to the previous month; Compared to the same month of the previous year, the material index increased by 53,29% and the labor index increased by 103,46%.
Housing prices are increasing, sales are decreasing: Housing sales decreased by 2,0% in the January-February period compared to the same period of the previous year, reaching 174 thousand 210. Mortgaged house sales decreased by 49,1% in February compared to the same month of the previous year, reaching 8 thousand 827. The share of mortgage sales in total housing sales was 9,4%. Mortgaged house sales in the January-February period decreased by 56,1% compared to the same period of the previous year, reaching 14 thousand 742. Housing sales to foreigners decreased by 48,0% in the January-February period compared to the same period of the previous year, reaching 3 thousand 907. The House Price Index (HPI), which is calculated to monitor the quality-adjusted price changes of houses in Turkey, increased by 2024% compared to the previous month and reached 2,3 in January 1190,0. KPI, which increased by 68,0% compared to the same month of the previous year, increased by 1,4% in real terms in the same period.
Green cement has become mandatory in public tenders: With the "Communiqué on the Expansion of the Use of Green Cement with Low Carbon Emissions in Public Procurement Contracts" published by the Ministry of Environment, Urbanization and Climate Change on March 16, the use of green cement has become mandatory in public tenders. In order to encourage the use of green cement, which stands out with its environmental sustainability and technical efficiency; The clinker/cement ratio in the cement to be used will be purchased at a maximum of 0,80, and this ratio will decrease to 2030 in 0,75. Thanks to this important development, which is seen as a first in the context of sustainability in the construction industry, embodied carbon emissions of buildings in our country are expected to decrease significantly.