The FINANCIAL — With the construction sector still feeling strong negative aftereffects of the global financial crisis, housing prices are at their lowest, yielding no profit to construction firms, but when existing stocks are depleted, prices will rise again by the second half of the coming year, Mesa Construction Group Board Chairman Erhan Boysanoğlu said on December 13.
"Speaking to the Anatolia news agency, Boysanoğlu said the construction and real estate sectors are the first to be affected by economic crises and recover less quickly than other sectors. The negative impacts of the last financial crisis, which began in 2001, on the sector lasted at most a year, he said, adding that the recent global crisis, however, had impacted the sector more severely, meaning recovery would take longer," Today's Zaman reports.
“The floor area [of constructed buildings] decreased by 19.6 percent this year compared to the previous year. Building construction declined by 14.8 percent while the value of total construction decreased by 25.1 percent. The number of homes constructed fell by 17.2 percent. These are huge drops for the sector,” he said. Housing sales fell due to the financial crisis, resulting in significant drops in housing prices, Boysanoğlu stated. The prices are now at their minimum, he added, explaining that most firms are exerting themselves to keep their doors open. The sector cannot sustain itself with these prices, however, and after depleting existing stock, prices will rise again by the second half of 2010, he asserted.
Speaking on the operations of Turkish construction firms in foreign countries, Boysanoğlu said the current target destination of Turkish construction firms is Africa, adding that companies specializing in infrastructure and superstructure are searching for further investment opportunities in these countries. African countries are in great need of new housing projects and investments in infrastructure, he said, stressing that Turkey can find lucrative opportunities in these new markets.
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