What Is The Exact Reason Of The Increase In House Prices?

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IMSAD President Hinginar said that the increase in house prices are because of the land rents not because of the material usage. Housing price increase is not due to the material prices. Association of Turkey Construction Material Producers (Turkey IMSAD) Chairman Fethi Hinginar stated that what caused the increase in house prices is not the construction materials. In 2015 construction materials prices increased 5.9 while the inflation rate was 8.8 percent. This means the increase was below the inflation. The reasons of the increase are the land rents and sales with foreign currency.

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Housing price increase is not due to the material prices. Hinginar, referring to the increase in housing prices, said that in some environments, the source of rise is seen due to the price of construction materials, it was not true. Hinginar, Turkey IMSAD Meeting Agenda in his speech, referring to Turkey’s 4 percent growth in 2015, said the growth was succeeded with 5.7 percent growth in the last quarter of the year.

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The construction sector in 2015 didn’t grow the same percent this year contrast to the last year and the growth was only 1.7. However, the construction sector has reached 5.4 percent growth rate in the last quarter of the year. The growth is mainly based on the public construction such as third airport, third bridge and the Gulf Crossing Bridge. According to allegations of Hinginar, these projects are shown as public spending despite the fact that they are not. As you can see there can be so many reasons of the increases. Housing price increase is not due to the material prices. The reasons of the increase are the land rents and sales with foreign currency. In short, despite the increases Turkish construction market needs to be more growth.

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