TCA Proposed An Alternative Model For Housing Sales

TCA proposed an alternative model for housing sales. The Turkish Contractors Association (TCA) has published its April report.

The Turkish Contractors Association (TCA) presented a proposal for low-interest loan campaigns and alternative real estate financing models for housing sales. According to the statement made by the TCA, the Construction Sector Analysis Report prepared by the association for April was announced. In the report, drawing attention to the increase in input costs in the construction sector, it was stated that the Turkish Statistical Institute (TURKSTAT) Construction Cost Index increased by 27.8 percent in January and 27.6 percent in February on an annual basis. It was stated that there are serious financial and operational problems in the construction sector due to the rapid change in market conditions, the fluctuation in the exchange rate, and the coronavirus (Covid-19) epidemic. In the report, which said that the increase in housing prices that started in 2020 continued in parallel with the rise in construction costs, it was stated that housing sales decreased by 22.9 percent in the first quarter of this year compared to the same period last year. In this context, the report emphasized that the implementation of low-interest loan campaigns, especially for first-hand housing sales, is important to support the sector, and said, "In a longer term, considering the invigorating effect of the revival in the housing segment in many sectors, developing alternative real estate financing models and especially housing for low-income people is recommended."