Let’s find a solution for 100 thousand unfinished houses

The most important aspect of the housing problem in Istanbul is the disruptions in housing production. When limited housing production due to costs was added to the scarcity of land and the shortage of safe housing, both housing prices and rents in Istanbul have increased disproportionately in recent years. The housing production problem that started with the Covid-19 epidemic; The Russia-Ukraine War deepened further with the February 6 earthquakes centered in Kahramanmaraş. Although there has been some activity in the housing supply in the last year, this time the housing loan interest rates are unbearable, putting pressure on both contractors and citizens who want to buy a house.

THERE ARE 100 THOUSAND HOUSES UNDER CONSTRUCTION

There are around 100 thousand residences in Istanbul waiting to be completed due to financial difficulties or legal disputes. Drawing attention to the problem in this regard, Artaş Holding Chairman Süleyman Çetinsaya called on the government to take action to complete these projects. Answering our questions at the press chat meeting held in Istanbul, Çetinsaya said, “Many housing projects left unfinished in Istanbul by inexperienced and financially insufficient companies remain idle. Yes, legal proceedings have started, but those constructions, which are 90 percent completed, are decaying. The state needs to find a solution to this. This resource should not remain idle. It is obvious who did this. ‘You took the money, you let the people down. The state needs to ask, “What did you do with that money?” They harm the industry. “They become contractors and they damage trust,” he said.

LAND COST DOES NOT GO BELOW 50%

Stating that there are real estate, shopping mall and industrial investments in various regions of Turkey, Çetinsaya said that in Istanbul, there is a big problem as the land price reaches 50 percent of the construction cost. Stating that 5 million lira of a 10 million lira house is the land cost, Çetinsaya stated that as the land price decreases, the construction cost will also decrease and the house will be more accessible.

OBSTACLE IN URBAN TRANSFORMATION

Underlining that the problem of occupied treasury land in slum areas needs to be solved, Çetinsaya said, “When you start talking to the rightful owner for urban transformation, they open the door at 50 percent. There is no one who accepts a flat rate below 40 percent. In Europe and the USA, land cost is 20 percent of the total construction cost. If the state solves this problem and contributes to land production, the housing price will decrease. “Treasury lands need to be opened faster,” he said.

We gave priority to the projects we sold

Stating that there have been some problems that have been ongoing since 2018, Süleyman Çetinsaya said, “But we will overcome the problem together. We have a housing deficit. The cost of the earthquake impoverished us all. We are experiencing a recession in construction. Banks do not give housing loans. We also respect economic measures. Let’s get through the election, but I’m not very hopeful about 2024. There will be improvement in 2025. We have 5 ongoing projects. “We gave priority to completing the constructions we sold and started,” he said.

Purchases for investment purposes are over

Pointing out that no one buys a house for investment purposes in an environment where deposit interest rates exceed 50 percent, Çetinsaya said, “We sell to users, partly to foreigners. There is a perception that sales to foreigners increase prices, and this is absolutely wrong. There is stagnation in housing. Economic measures are also in question. “These days too will pass,” he said.