MÜSİAD Construction, Environmental and Building Materials Sector Chairman Reha Yeltekin stated that iron prices, which increased by 70 percent in the last year due to the increase in the exchange rate, are causing deterioration in the cost calculations of construction projects. Reha Yeltekin, warned that the increase problem might come to a halt at the sites.
Yeltekin said that even if it is for a temporary period, VAT reduction should be made in iron prices.
Yeltekin stated that despite the high fidelity, the inability to find iron material in desired dimensions is another important problem.
According to the information given by Yeltekin; the unit price of construction materials, workmanship, 25 per cent construction profit, and unit costs including overheads are approximately 2500 TL / ton plus VAT, whereas today, without any other expenses, only the unit price of ferrous materials is around 2200 TL / ton plus VAT.
According to the announcement, the price increase in the construction market during the last one year is 70 percent and the increase in the period since the beginning of the year is 50 percent.
“It is estimated that this excessive price increase only increases the total construction cost of residential construction by 8 percent since the beginning of the year and by 5 percent in the case of industrial construction,” emphasizing that the sector representatives have been in a very difficult situation with the increase in prices of iron and flat steel products in recent months. This situation is causing unprecedented degradation of all initial cost estimations, both in government investments and private sector projects. ”
Yeltekin said that in spite of the high fidelity, it is another important problem that iron material can not be found easily in desired sizes.