Construction material industrial production increased by 5.4% in August 2023 compared to the same month last year.
According to the Monthly Sector Report of the Turkish Construction Material Manufacturers Association (Turkiye IMSAD), employment in the construction sector reached 1 million 740 thousand 387 in August 2023, reaching the highest level since 2020.
While the production rate slowed down in the first quarter of the year due to the impact of the earthquake and the decrease in exports, construction material industry production increased by 1.2% compared to the same period last year.
In the second quarter, construction material production increased by 1.4% compared to the same period last year, as a result of the aftereffects of the earthquake, the uncertainty of the election process, the slowdown in foreign markets and the decrease in the number of working days in April and June.
In July, construction material industrial production increased by 29.8% compared to the same period last year, and in August there was an increase of 5.4% compared to the same month of the previous year.
According to the report, demand conditions in foreign markets continued to remain weak in August.
Domestically, after the elections, new pricing and new economic policies began to affect expectations, production and sales. In this context, while production increased in 13 sub-sectors in August compared to the same month of the previous year, it decreased in 9 sub-sectors.
In the first 8 months of this year, production increased in 16 of 22 sub-sectors compared to the same period last year, and decreased in 6. In the 8 months of 2023, the highest production increase compared to the same period last year was in metal doors and windows with 42.2%.
The production of metal structures and building parts increased by 42%.
Wooden construction material production increased by 26.8%, and plastic construction material production increased by 19.3%. The sub-sector that experienced the highest decline in the first 8 months of the year was construction glass with 16.6%. It was followed by ceramic coating materials with 13.4%.
Total employment, which decreased to 1.61 million in June due to the elections, started to increase with the decrease in uncertainties and new economic policies. In this context, employment in the construction sector increased to 1.7 million in July and 1.74 million in August, reaching the highest level in the last 4 years.
In the report, which is closely followed by sector stakeholders, the 12th 5-year development plan covering the period 2024-2028 was also mentioned.
In this context, it was emphasized that urban transformation plans covering 45 provinces by the end of 2023 will be completed for 81 provinces by 2028. Within the framework of this plan, it was aimed to build 500 thousand new social houses by 2028.
The report points out that sales made with bank loans, that is, sales with mortgages, play an important role in housing sales throughout Turkiye, and it was announced that 8 thousand 446 house sales took place with mortgages in September 2023.
Accordingly, mortgage house sales in September were the lowest monthly sales of 2023 so far. Mortgaged house sales in September 2023 decreased by 50.2% compared to the same month last year.
In the first 9 months of the year, mortgaged house sales were 160 thousand 844, 29.6% below the same period last year.
Source: Trthaber / Prepared by Irem Yildiz