The increase in construction material prices hit urban transformation!

In his statement, MÜFED President İsmail Kahraman mentioned that around 65 percent of the buildings in Izmir need to be renewed, and said that the material prices increased until the municipality signed and issued the construction permit.
Exorbitant price increases and rising costs in construction materials, which have been on the agenda lately, have caused many construction projects to be stopped. According to the details shared on the subject, many contractors in the sector, which is struggling with difficulties, have stopped carrying out projects. Making important statements about the problems experienced by the sector, İzmir Chamber of Commerce (İZTO) Board Member and Contractors Federation President İsmail Kahraman said, “There is an army of approximately 400 thousand contractors in the country. However, it is observed that almost 70 percent of our contractors have either suspended their activities or tend to change sectors,” he said. Kahraman noted that 70 percent of the contractors who produce medium and small scale projects and take an active role in the transformation of risky buildings are no longer able to produce projects on the streets, and mentioned that the time lost by contractors in the licensing phase, who have difficulty in keeping prices, increases the cost.

BOTH SIDES ARE VICTIMS
Stating that the expected results could not be achieved in urban transformation and the transformation of risky buildings, Kahraman said, according to the news by Filiz Erol from Yeni Uzman, "Flat owners who put the house they live in into urban transformation are against the revision of the figures in the contract with the contractor according to the inflation difference when the construction license is obtained from the municipality and the construction begins." comes out. In contracts made without price increases, the contractor terminates the contracts with the concern that he will lose money. "Contractors and land owners became victims when the prices of materials, which are always on the agenda, increased exorbitantly," he said. 
Stating that this situation has turned into chaos in some regions, Kahraman said, “Citizens have made partial payments to the contractor, and when the interim work starts, the contractor demands a difference. A citizen who barely balances his budget becomes a victim when his house is demolished. Everyone suffers from projects that are delayed due to long license periods. Long construction license periods cause problems in an inflationary environment. "In this regard, local governments' acceleration of the process will make a significant contribution," he said.

PROJECTS REMAIN UNHALF
Stating that the construction sector has been on a horizontal course for a long time, Kahraman said, “Exorbitant price increases and high interest rates have dragged the sector into a stagnant course; Our members have become unable to do business. The most important factors are access to finance, high interest rates, high land costs, exorbitant material prices, problems in the workforce, and bureaucratic problems. For these reasons, it is very difficult to produce a project. If production is completed and the buyer cannot be reached, there will be financial problems and the project will be left unfinished. Citizens will use loans to access housing. However, the interest rates are so high that it is almost impossible to pay the loan with these rates and limits. "It is almost impossible for low-income citizens, especially, to buy a house with these loan rates if they do not have any savings aside," he said. Stating that in order to reduce land costs, the public can plan marginal lands, especially those that do not have agricultural and forest qualifications, and open them to citizens who want to renew their homes through transformation, Kahraman said, "Producing land by giving priority to contractors who carry out urban transformation will make a significant contribution to purchasing power."
Expressing in his statement that the increase in construction materials should be controlled in order to build earthquake-resistant cities, İsmail Kahraman said, “Just as the Mass Housing Administration is a public institution involved in construction production, the state, that is, the public, should also be involved in basic construction materials. In sectors where there is a public sector, the risk of cartel and monopolization is eliminated. "Having the public say in sectors such as iron, steel, cement and plaster is of vital importance in terms of market balance and price stability," he said.
YOUNG PEOPLE DO NOT WANT TO WORK IN CONSTRUCTION

Stating in his statement that the country has at least 60 percent risky building stock, Kahraman said, “In Izmir, this rate is slightly higher. We recently experienced a huge earthquake disaster centered in Kahramanmaraş. Intensive production in the earthquake region also made it difficult to find workers in other regions. Young people do not want to work in construction. "For this reason, we have difficulty finding workers," he said.

https://emlakkulisi.com.tr/insaat-malzemesi-fiyatlarindaki-artis-kentsel-donusumu-vurdu/809437