Prices of Houses Go Through The Roof Because of Land Cost

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Housing Development and Investment Association (KONUTDER) Board Member, and CEO of a construction company, Altan Elmas: “Although there is a substantial increase in dwelling production, there must be a decrease in prices of houses when there is over-production but the disadvantage comes with land always increases the prices.”

Elmas, in his statement to a AA pressman in Bursa where he has visited as a part of a program, says that there is 10 % increase in house sales in Ocak-Subat period of 2016 compared to the same period in last year.

Elmas who states that there is much more need in dwelling for low and middle segment, also says that these segments satisfy the house production.

Elmas also points that, ability to have a house is not at the same level for all the citizens. Also demand and achievement don’t correspond to each other. Elmas who states that one of the biggest problems of Turkey Real Estate Sector is land and land cost, also says: “ As long as the situation is like this, that pushes the prices of houses up. Although there is a substantial increase in dwelling production, there must be a decrease in prices of houses when there is over-production but the disadvantage comes with land always increases the prices.”

“ The Prices are at the Top in Tenders”

Altan, while saying that there is an over-producing in luxury house compared to the demand goes on like this:

“ It also looks like there is not enough dwelling production for middle or upper-middle class inasmuch as the demand. If we can produce the dwelling in reasonable price, we would not have a problem such as ‘Whom are we going to sell this house to?’. We can not produce house because land cost is a big problem for us. The solution to this problem is producing land. This is the biggest problem of this sector.”

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