What are the expectations of Turkey’s construction sector from 2019
It is clear that Turkey’s construction sector is not going through its best times, currently. The companies are reported to be facing substantial loss of revenues meaning less sales and the danger of closing businesses therefore, does not seem to be very weak, really.
In the meantime however the administration being aware of this threat has introduced new measures and regulations hoping to give the sector a real push to get on the right track again. Some professionals in the sector note that said regulation imposed are quite positive and it is important that they are implemented properly.
On the other hand it is no secret any more that Turkey had quite an unfavorable year in terms of economic growth and in fact there was a 3 percent contraction in the last quarter of 2018. This certainly had a very serious impact on the sector as well, like with many other sectors. Professionals also comment that for the construction industry to achieve a successful performance the economy should at least have a growth performance of minimum four percent whereas Turkey grew by 2.6 percent in 2018.
Experts note that it is quite difficult to make a strict forecast about the performance of the sector in 2019 as this is to depend on several factors such as macro economy and political as well as geopolitical factors to prevail in 2019. In any case the sector does not expect to have a better year than 2018 provided all variables are still valid. However if positive changes such as the ones FED could put into practice are experienced regarding macro economy issues, we could then expect a better year in 2019.
As for sales in Turkey, this country ranks top of the list with 1 million 400 thousand residential sales among all European countries. Turkey ranks second among OECD countries as well.
1 million 400 thousand residential sales market has already sold the most homes in Turkey and Europe. We’re the second in the OECD. Already this number is more than 800-900 thousand is quite a sufficient number, therefore, this should be slightly balanced.
Based on new regulation introduced, construction sector will be under a strict control as compared to earlier and constructors will not be able to realize any project they want, any more. The authority will check out the financial structure, the experience etc. of concerned company and so on.
Experts also say it is important that the whole system is regulated by the state like with banking and runs smoothly in compliance with the basics of the system. The parties that are not eligible to operate in the sector should not be encouraged to get involved in such business activities.
