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Turkish construction sector has suffered most.

Turkish construction sector has suffered most

Due to the global financial crisis broke out, Turkey's construction sector suffered large losses. Investments in the construction sector for the 9 months of 2008 totaled 70.1 billion New Turkish Liras (YTL), and for the third quarter of 2008, there has been decline in the market at 4.3%. As a result, it is difficult to build the optimistic forecasts about 2009.

The increase of Turkey's construction sector for the year 2005-2006 has reached a level of 20%, but due to the mortgage crisis, the construction sector in 2008 experienced the greatest decline. Representatives of the construction sector had asked Turkey Government to provide assistance in the amount of 20 billion YTL and noted that: "2009 at best, will be the same as 2008. If the Government does not support this sector, the deeper crisis is inevitable."

Reducing the demand for housing
Building Information Center (BIC) has prepared a report entitled "Turkey's construction sector in 2008." According to the report, growth in the construction sector, which began in 2004 and reached the greatest level in both 2005 and 2006, for 60% was the construction of housing in Turkey. However, due to reduced demand for housing in the second half of 2006, the sector entered a period of stagnation. For this reason, from the second quarter of 2007, growth of the sector had been reducing. By the end of 2007 the growth rate of the construction sector dropped to a minimum for the last 4 years and the level was 5.7%. The growth rate of investment in 2006 amounted to 13,3%, but in 2007 this rate fell to 5.5%.

A record decline in construction sector
In all sectors except the construction in 9 months of 2008, was recorded an increase. In the construction sector during the first quarter of 2008, there was recorded an increase at 1.5%, while the second and third quarters of recession which conform to 0.2% and 4.3%. Total for the first 9 months of 2008 in the construction sector of Turkey as a whole, the decline was recorded at 1.1%. The number of permits issued for construction, which is the primary indicator of investment in construction, for the second quarter of 2008 compared with similar period in 2007 decreased by 20% and amounted to 500 thousand.

Investments of 70 billion YTL
During the first 9 months of 2008 the total number of investments made in Turkey amounted to 147.1 billion YTL. This figure has increased in comparison with the previous year by only 0.9%. Total investment made in the construction sector amounted at 70.1 billion YTL. By the way amount of construction work related to the public sector decreased by 3.8%, related to the private sector decreased by 0.5%.

Turkey's construction sector in the figures.
The construction sector employs 1.5 million people, with an impact on 250 other sectors.

By the end of 2008 it is expected that the number of dwellings built will reach 500 thousand

Investment in the construction sector for the 3 quarters of 2008 amounted to 70.1 billion YTL.

Despite the fact that in the third quarter of 2008, the share of public investment has increased, the overall decline observed in the construction market at 4.3% because of the decline of private sector investment.

In the construction sector only for the production of building materials there are 6 thousand 500 firms. 60% of the production data of this companies intended for the domestic market and only 40% for export.

Construction materials occupy important positions among the exported goods. For 2000 as a whole have been exported goods worth 2.5 billion dollars, and in 2006 - 11.2 billion dollars. The share of construction materials from the total exports amounted to 13.1%.

In 2009, only in Istanbul, 40 new projects
Despite the fact that the demand for real estate has fallen significantly because of the financial crisis, the Turkish stock market is trying to stand on its own feet, offering new residential projects. In Istanbul, there are 40 new projects for 38 thousand 883 units of real estate. Construction, developer attempt to attract buyers, offering flexible payment fixed course, deferred payment, etc.

News was edited by "VESTA Estate".

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