Page 66 - TURKRptFeb20

costs have already risen 70%, according to Durbakayım.
Turkey’s home price index increased by 7.2% in nominal terms on an annual basis in November, accelerating from the previous month’s 6.8% rise, Central Bank data showed.
The national lender, however, noted that home prices declined around 3.1% y/y in real terms.
The residential property price indices for new and existing dwellings rose by 10.4% and 7% in November from a year ago, respectively.
Turkey’s construction materials industry is set to grow only by 1-2% this year in line with the severe lull in activity that has hit the country’s housing market, business group IMSAD said on January 7.
The association also suggested that almost all large public infrastructure investments have been completed, thus no strong support from the public sector for construction materials providers is expected in 2020.
According to IMSAD, the Turkish economy is set to grow by 3.5-4% this year, but this growth rate is unlikely give much momentum to the construction industry, which fell into a dire state in the wake of the 2018 currency crisis that plunged Turkey into recession.
House sales in 2020 will probably surpass last year’s level but construction companies will only be able to offload unsold inventory, thus demand for construction materials will remain weak, IMSAD added in a report.
Market tensions and downturns abroad will also depress the construction material industry’s exports, likely to stand at around $23bn at the end of this year, according to the association.
9.1.5 Tourism sector
In 2019, foreign tourist arrivals increased 14% y/y to 45mn.
9.1.6 Utilities sector
Turkey's total installed power capacity reached 91.07 gigawatts by the end of October 2019. As local demand for power has only increased marginally over the past two years, Turkey is thus faced with oversupply problems.
66 TURKEY Country Report OUTLOOK 2020 www.intellinews.com