British News Agency

In July, production increased in 19 out of 22 sub-sectors (86.34%) compared to the same period last year, while it decreased in 3 sub-sectors (13.66%). The current level of employment also recorded a 2.3 point increase in September compared to the previous month, following the fluctuations in the summer months.

The results of the Turkey IMIAD Monthly Sector Report for September 2023 have been announced. According to the report, production in the construction material industry increased by 29.8% in July 2023 compared to the same period last year. The high number of working days in July compared to the same period last year was highlighted as the most significant reason for the increase in production.

Demand conditions in foreign markets remained weak in July. However, domestically, post-election new pricing and economic policy expectations affected production and sales. In this context, in July, production increased in 19 out of 22 sub-sectors compared to the same period last year, while it decreased in 3 sub-sectors. The highest production increase in July 2023 compared to the previous year was 46.2%, recorded in the "Metal Structures and Parts" sub-sector. Production of metal doors and windows increased by 45.6%. Production of wooden construction materials increased by 30.2%, and production of plastic construction materials increased by 22.2%. The sub-sector with the largest decline was "Construction Glass" with a 16.4% decrease, followed by "Ceramic Coating Materials" with a 13.4% decrease.

The current level of construction jobs increased by 2.3 points in September

The Turkey IMIAD report highlighted the recovery of the current level of construction jobs in September. Accordingly, in September, the current level of jobs increased by 2.3 points compared to the previous month. The formation of new cost and pricing balances after the elections was cited as a significant factor in this increase. On the other hand, new orders for construction work fluctuated after the elections. Following the fluctuations in the summer months, in September, the level of new construction jobs decreased by 1.6 points compared to the previous month. The report also emphasized that the construction sector wants to see the new supply-demand balances and cost-price levels in the context of the new economic policies. Therefore, it is expected that new orders will remain weak for some time.

New housing sales decreased by 13.8% compared to the previous year

In the report, closely monitored by industry stakeholders, it was noted that a total of 35,310 new housing units were sold in August 2023, setting a record as the highest monthly new housing sales of the year. However, new housing sales decreased by 9.5% compared to August of the previous year. In the first eight months of the year, first-hand housing sales decreased by 13.8% to 238,109 units compared to the same period of the previous year.

The report also mentioned that the Medium-Term Program for 2024-2026 was announced in September. The program includes structural reforms in ten areas. One of the areas of structural reforms is disaster and risk management. Activities related to urban renewal in earthquake-prone areas, especially areas with earthquake risk such as Istanbul, were highlighted under the title of disaster and risk management. It was emphasized that in order to implement the reforms in the field of disaster and risk management, a Urban Renewal Law should be enacted, and an Urban Renewal Directorate or Ministry should be established.