Many people or firms who do not have professional competencies and do not have the financial terms and conditions easily entered construction without being subject to the test. When included in the small-scale housing production sector known as’ Yap-Sat’çi, the number of real estate developers operating in the sector exceeded 200. In Germany, with a population of 80 million, the total number of real estate developers is 3 800. Only in Istanbul there are 42 600 developers according to the chamber of commerce records. The situation is not different in Ankara, Bursa, İzmir, Konya, Gaziantep and other cities.
REQUIRED SECTOR ENTRY
Almost all sectors can work with regulatory criteria in Turkey, while supervision and control, anyone who wants to work can do. For example, an industrialist or textile can easily enter the production of housing. The permanent representatives of the construction sector emphasize that the sector is facing very serious threats with this trend. Due to excessive accumulation in the housing sector, supply demand balance is deteriorating. According to the representatives, such uncontrolled entrances to the construction lead to the production of unplanned housing, regardless of student. This can cause the industry to become stagnant, distorted and even collapsed over time.
Entrance of unskilled entrepreneurs from different sectors into the housing sector; which is the main raw material of the house, is rapidly depleting, causing the land prices to increase too much. This leads to a rise in the rate of construction contracts for the flat floor and to the housing of the final consumer at a much higher price. At the same time, overproduction is causing problems in construction materials such as iron and cement and increasing prices. As a result, housing sales prices are necessarily increasing. While housing prices exceed the reasonable price threshold that the consumer can get, the market is clogging. But uncontrolled housing production still continues.
Sector representatives are warning that this will be reflected in the entire market due to the domino effect of the risk caused by the unsustainable situation in the construction. According to the representatives, there is a serious housing stake in the sector, but production continues. The fact that consumer demand is low against high prices indicates that the industry may face a serious crisis in the future.
Sector representatives; all of these negativities are the main reasons for allowing unsupervised housing production. The representatives say that the technical and financial criteria for construction will have to be determined so that the problems do not increase further
For real estate developers, there is a need for a legal regulation that regulates authority and supervision of technical and financial criteria.
Sector representatives voiced the following vital proposal:
– Construction contractors must have a construction permit of up to 10 times as much as the equity they own
– The real estate developer who is applying for the license for the first time construction should not be licensed for the construction 500 thousand square meters.
– Applications for construction permits should not be made without obtaining the letter “No borrowed” from institutions related to those who have a definite tax and premium debt.