Turkish Contractors Association (TMB) published the April 2024 issue of the Construction Sector Analysis Report, which is followed with interest by economic circles and the sector.
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.
In the report evaluated by the Turkish Contractors Association for the first quarter of 2024, the following findings regarding the construction sector were included:
A NEW 4,3 BILLION DOLLAR PROJECT WAS UNDERTAKEN ABROAD: As of January-March 2024, 4,3 projects worth 40 billion USD 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 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 3,46.
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 in public tenders has become mandatory. 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.
