Off-plan property set to boost construction sector in Turkey
Sunday, January 10, 2010
The construction sector in Turkey was far from being rejuvenated during 2009 but the Construction firms are expecting to see a boost in the second half of 2010 as investment in off-plan property increases.
According to the Hurriyet Daily News, Erdal Eren, the chairman of the Turkish Contractors Association said that 2009 had been a tough year for the industry as the country's real estate market suffered from the economic crisis. The shrinkage in the sector continued throughout the year, with 18.9 percent and 21.4 percent contraction rates in the first and second quarters of the year, respectively and the overall contraction rate declined from its peak of 14.7 percent in the first quarter to 3.3 percent in the third quarter, the recovery in the construction sector remained limited, posting a contraction rate of 18.1 percent in the third quarter of the year. However, he predicted that 2010 would be better.
In order to boost sales and support the suffering sector in the face of the economic meltdown, the government introduced a cut in title deed fees and value-added tax (KDV) in March, which lasted until the end of June. Ugur Dumankaya, executive member of Dumankaya İnşaat, one of the largest and most respected companies in the construction business, said that 2009 was actually a successful year for firms that had managed to set up good organizational structures, admitting, however that sales had remained low compared to the low levels of mortgage interest rates.
Meanwhile, The Monetary Policy Committee at the Central Bank of Turkey took the decision to leave interest rates unchanged after 11 months of reducing the overnight borrowing rate. The bank took the decision following "a moderate pace of recovery in the economic activity". It added that interest rates were likely to remain at low levels in the medium term.
In good news for rental property investors, one sector of the Turkish economy which performed particularly well in 2009 was tourism. The Hurriyet Daily News reported last week that the country had surpassed its target of 25 million foreign visitors in 2009. Tourism minister Ertugrul Gnay said that "per capita tourist income is expected to rise above the world average" for the country in 2010.
Social BookmarkingAccording to the Hurriyet Daily News, Erdal Eren, the chairman of the Turkish Contractors Association said that 2009 had been a tough year for the industry as the country's real estate market suffered from the economic crisis. The shrinkage in the sector continued throughout the year, with 18.9 percent and 21.4 percent contraction rates in the first and second quarters of the year, respectively and the overall contraction rate declined from its peak of 14.7 percent in the first quarter to 3.3 percent in the third quarter, the recovery in the construction sector remained limited, posting a contraction rate of 18.1 percent in the third quarter of the year. However, he predicted that 2010 would be better.
In order to boost sales and support the suffering sector in the face of the economic meltdown, the government introduced a cut in title deed fees and value-added tax (KDV) in March, which lasted until the end of June. Ugur Dumankaya, executive member of Dumankaya İnşaat, one of the largest and most respected companies in the construction business, said that 2009 was actually a successful year for firms that had managed to set up good organizational structures, admitting, however that sales had remained low compared to the low levels of mortgage interest rates.
Meanwhile, The Monetary Policy Committee at the Central Bank of Turkey took the decision to leave interest rates unchanged after 11 months of reducing the overnight borrowing rate. The bank took the decision following "a moderate pace of recovery in the economic activity". It added that interest rates were likely to remain at low levels in the medium term.
In good news for rental property investors, one sector of the Turkish economy which performed particularly well in 2009 was tourism. The Hurriyet Daily News reported last week that the country had surpassed its target of 25 million foreign visitors in 2009. Tourism minister Ertugrul Gnay said that "per capita tourist income is expected to rise above the world average" for the country in 2010.
Labels: Investment-property, Off-plan
