ISTANBUL — Housing projects that were postponed in 2025 due to weak demand and economic uncertainty are beginning to restart in 2026, but financing difficulties continue to put significant pressure on Türkiye’s ready-mix concrete and construction sectors.
Adem Genç, Chairman of Miltaş Beton ve İnşaat Madencilik Sanayi Ticaret AŞ and a member of the Istanbul Chamber of Industry’s Construction Products Committee, said housing inventories built up in previous years have declined because of limited new supply. However, he noted that restricted access to bank financing has slowed home sales despite renewed project activity.
Genç said construction costs continue to rise while housing prices have failed to keep pace, resulting in a decline in real home prices. He added that limited access to financing has effectively stalled parts of the market, with ready-mix concrete producers facing mounting cash-flow problems due to delayed contractor payments, longer check maturities, and elevated borrowing costs.
Although housing sales have not come to a complete halt, profitability across the sector has fallen sharply, forcing many companies to focus on maintaining operations rather than expanding production. At the same time, the completion of much of the post-earthquake reconstruction work has reduced demand for ready-mix concrete, weakening activity across the industry.
The slowdown has also affected the second-hand construction equipment market. According to Genç, companies completing projects in the earthquake-hit region are putting concrete pumps, mixers, and batching plants up for sale, but buyers remain scarce. As a result, depreciation on nearly new construction machinery has increased to 30–35%, compared with around 20% previously.
Despite the sector’s challenges, Genç said urban renewal projects remain the strongest source of demand for the ready-mix concrete industry. He added that a gradual decline in interest rates and improved access to financing would stimulate mortgage-backed home sales, helping to revive both residential construction and concrete production.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök