Land Value Blows Up Resident Prices

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Altan Elmas, who is a Residential Development and Investors Association’s Member (KONUTDER) and the chairman of the executive board of a construction company said “despite the excessive construction of residents, when the construction is too much, there must be some kind of a decrease but the disadvantage which was brought by the land is keep increasing the prices.”

Mr. Elmas came to Bursa within a program, made some statements to an AA reporter. In his statements Mr. Elmas pointed to the increase, which is more than 10%, in January – February resident sales according to the same term of last year.

Elmas stated that the need in residents is mostly from middle and lower segments, also stated most of the constructions were afforded by these segments.

Mr. Elmas stated the citizens’ Access to residents was not at the same point and the need and the access were not matching up.

Emphasizing that one of the biggest problems in Turkey’s resident sector is land and its prices, Mr. Elmas also said “If it continues in the way it is, especially in big cities, this will inevitably increase the resident prices. Despite the excessive construction of residents, when the construction is too much, there must be some kind of a decrease but the disadvantage which was brought by the land is keep increasing the prices.”

“SKY IS THE LIMIT IN TENDER BIDS”

Altan stated that luxury residents were constructed over a certain amount of demand and continued:

 

“It doesn’t seem that enough amounts of middle or superior class residents were constructed. If we could construct residents at a reasonable price we wouldn’t worry about whom to sell. We cannot construct residents since the land values are keep pushing us up. Land production is the key to this. Because the areas in order to be prepared to use as council estate and to sell affordable estates, maximum in three or four years, become areas where affordable estates cannot be sold because of demand. Sky is the limit in tender bids, numbers are climbing. When they do, constructing affordable residents is left for another time.

“LUXURY CONSTRUCTION IS STOPPED”

Altan also mentioned amount of stock in luxury resident construction said “luxury resident construction over demand, loads some stock to the sector. There is always an amount of residents expected to be sold. It is not something to hit the sector for six. It decreases in one or two years when there is block. Luxury construction is stopped immediately. So it is balanced in itself.”

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