Stimulated by government incentives and ongoing housing campaigns, low real estate loan interest rates have boosted the construction sector, a locomotive in sustaining growth, and sector representatives predict it will continue to boost Turkey’s economic expansion.
Growth is expected to continue in the construction sector that has come to the fore with its contribution to the overall growth rate of 5.1 percent for the Turkish economy in the second quarter of the year.
When activities that constitute the gross domestic product (GDP) are examined, the construction sector grew by 6.8 percent in terms of the chained volume value in the second quarter of 2017, compared to the same period last year.
Sector representatives indicated that government incentives, provided support, ongoing housing campaigns and the fact that housing loan interest rates continue to remain relatively low have all had an effect on this growth.
Chairman of the Turkish Construction Industrialists Employer’s Union (İNTES) Celal Koloğlu stressed that the economy continued to grow in the second quarter thanks to the steps taken by the government, adding that the construction sector played an important role in the growth. He said: “The housing sector also continues to grow through the housing loan campaigns of banks, incentives provided by the government and ongoing regulations in value-added tax rates.”
Koloğlu predicted that if the government maintains its structural reforms and investment-encouraging incentives, the growth trend in the construction sector will continue with the reflection of public infrastructure investments and private sector projects in the coming quarters, as well. He noted that the period of urban transformation will significantly boost dynamism and growth in the sector in the coming period, adding: “As long as the confidence environment in the real economy is established through incentives, the contribution of the construction sector to the overall economy will continue to rise.”
Emphasizing that the construction sector is the carrying force behind the national economy with the added value and employment it creates, Koloğlu said this power should be used more efficiently by employing professional, legal and unionized workers: “Qualified, registered and unionized workers will enlarge both the construction sector and the national economy. With investments to be made in the construction sector, Turkey will announce its new success stories to the entire world and diligently work to fulfill the 2023 vision,” he added.
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