CONSTRUCTION SECTOR PROFILE
The construction sector is one of the sectors with the highest sensitivity to economic developments. Therefore, the fundamental changes in economic indicators in 2019 affected the sector significantly. Lack of confidence, insufficient demand, cost increases, high interest rates, exchange rate increases, insufficient legal framework, and such factors have adversely affected the housing sector and continue to do so.
2019 ended in the shadow of global growth concerns and trade wars. The recession in the global economy continued to put downward pressure in the construction industry. The construction sector which is the locomotive of the global economy its growth potential seems stable but it is sensitive to economic and political risks. The numbers and data indicate that the industry will not be able to return to its bright days in a short period of time.
The construction industry shrank by an average of nine percent from the second half of 2018 to the second half of 2019. In the January-October period, new home sales decreased by a record 28.4 percent compared to the same period of 2018, while second-hand house sales increased by 2.1 percent. In the same period, the housing sales to foreigners increased by 18.9 percent compared to the same period of 2018.
Looking at the future outlook, the industry maintains its high potential in almost all areas in the long term. There is an effort to overcome the short-term vulnerabilities with public support, but to speak of a permanent recovery stability in financial markets and acceleration in confidence indices must be seen in a concrete way. In 2020, it is expected that the activity in the sector will start with the sales of home campaigns in the direction of the depletion of stocks.