(zaman.com) - The thriving construction sector of the past two years has come face to face with the danger of recession following market turbulence and a subsequent hike in interest rates.
Several construction companies and contractors note a decrease in demand, and are actively researching solutions to offset the standstill in business. As part of this proactive movement, Buketak Construction Company fixed its home loan rates and determined a monthly profit share of 0.98 percent in the agreement it reached with Kuveyt Turk Participation Bank, reports Trend.
The companys board chairman, Mahmut Asmali, estimates the construction sector has a very bright future. The textile sector was once very active and everybody wanted to participate.
But nowadays, its the construction sector thats highly sought, Asmali said, adding that construction by unlicensed professionals poses a serious threat to the future of the construction sector.
Asmali believes that sector growth fueled by the housing need of Turkeys young and dynamic population will continue, though perhaps not to the extent seen in 2005. Citing recent market fluctuations increased the input costs for construction, Asmali points out the prices of steel, copper and iron rose by nearly 40 percent.
Asmali asserts the activity seen in 2005 may only be reached again after two years, and states strong companies will survive while weak ones will be swept away in the turbulence.
Though the construction sector may grow slowly for a few years, it will still be ahead of many sectors. Research reveals that only three million people live in sound housing in Istanbul. Some seven million people live in the suburbs and old buildings. These people need solid dwellings. The construction of high quality projects that are reasonably priced will continue, Asmali concluded.