Construction sector cannot determine its direction

Turkey Ready Mixed Concrete Association (THBB) "Ready Mixed Concrete Index" 2023 April Report also reported that the sector had difficulty in determining its direction. In the report, the fact that both activity and expectations remained low compared to last year pointed to the weakness of the possibility of a serious revival in the construction sector in the short term.

In the report, it was pointed out that the first signals regarding the direction of the sector, especially in the period after the elections, are important. Yavuz Işık, Chairman of the Board of Directors of THBB, stated that the Activity Index has not been able to hold above the threshold value for the last 4 months and said, "The fact that both activity and expectation remain low compared to last year points to the weakness of the possibility of a serious revival in the construction sector in the short term. Especially in the period after the election, the first signals regarding the direction of the sector are important." Giving messages on urban transformation, Yavuz Işık said, "The 'structural transformation', which is the most important key to sustainability, has become much more critical for the construction sector. Making the existing building stock earthquake-resistant and implementing earthquake-oriented regulations in all construction activities requires not only urban transformation but also 'mental transformation'. The issue of urban transformation, which is still hot after the earthquake disaster we experienced, should continue to be the priority of the entire sector and policy makers."

Building permits decreased

According to TUIK data, in the first quarter of 2023, the number of buildings granted building permits by municipalities decreased by 9.2 percent and the area decreased by 2.1 percent. In the first quarter of 2022, 27 million 295 thousand square metres of building permits were issued, while in the first quarter of 2023, the area permitted was 26 million 713 thousand square metres. There was an increase of one thousand 7 in the number of flats.

Compared to the same quarter of the previous year, in the first quarter of 2023, the number of buildings, the number of flats and the area of the buildings for which occupancy permits were issued by the municipalities decreased by 10.5 percent, 19 percent and 17.2 percent, respectively.