
The Economist - Our Founder Melih Simsek's Economist Interview
Earthquake-resistant sustainable structures are coming to the fore.
Of Turkey's 36 million building stock, 6 million houses are not safe against natural disasters.
There have been 230 thousand devastating earthquakes in the last 100 years and 130 thousand people have lost their lives in these earthquakes. The damage of the February 6 earthquake alone to the Turkish economy was 130 billion dollars. Stating that if there had been earthquake precautions, this damage would have remained at the level of only 20 billion dollars, Orkent AŞ Chairman of the Board of Directors and Urban Transformation Expert Architect Dr. Nihat Şen emphasizes that urban transformation should be considered as a national security issue and an Urban Transformation Financing Bank should be established for urban transformation works and transformation of buildings caused by earthquakes and natural disasters.
URBAN TRANSFORMATION FINANCING BANK SHOULD BE ESTABLISHED
Şen said, "Since earthquakes should not be understood as natural disasters, fires, floods and droughts are also natural disasters, urban transformation is also needed in these areas and these issues should be evaluated in the urban transformation works to be carried out. In order to accelerate reverse migration, attraction zones should be created through national planning and projects, and they should be designed with their infrastructure, superstructures and social facilities."
SALES ARE MADE BELOW COST
The number of sales transactions made in land registry offices in the eight months of the year was 1 million 770 thousand 35. In the same period, the title deed fee revenue from sales transactions amounted to nearly 51 billion TRY. According to TURKSTAT data, the area of buildings for which building permits were issued decreased by 30.9 percent, while the area of buildings for which occupancy permits were issued decreased by 14.7 percent. Construction cost index increased by 66.12 percent in June compared to the same month of the previous year. The data indicate that while new housing production and housing deliveries fell, costs increased. Stating that there are opportunities for buyers in real estate, Altın Emlak Global General Manager Mustafa Hakan Özelmacıklı said, "When we look at the latest Central Bank housing price index, there is a 14.3 percent decrease in real terms compared to the same month of the previous year. We are in a period when housing prices are declining according to inflation and sales are made significantly below new costs. There are also opportunities in offices and shops, especially for investors."
September 15, 2024 Economist 11 According to a World Resources Institute report, 1.6 billion people will lack the right to shelter in 2025. In our country, which is an earthquake country, there is a problem of safe housing, rents are increasing and it is becoming increasingly difficult to own a house.
According to data from the Turkish Statistical Institute (TurkStat), housing sales decreased by 17.5 percent in 2023 compared to the previous year to 1 million 226 thousand. A total of 545 thousand houses were sold in the first six months of 2024. In 10 months of 2023, land, field and commercial real estate sales reached an all-time high of 1.4 million units. Consera Founder, TUCSA Vice Chairman, İNDER Board Member Melih Şimşeksays that despite the decline in housing, the rise in other types of real estate means that different alternatives for home ownership are becoming widespread in Turkey. Stating that the industrial housing concept, which stands out in the world in this regard, which is an earthquake-resistant and sustainable construction method, provides an alternative to home ownership in Turkey Lightning"As one of the pioneers of 'off-site construction production', we are building cost-effective and earthquake-safe structures for people," he says. With off-site construction production, the work done on site is carried out in the factory at the maximum level. Thus, unexpected cost increases in construction are prevented, while most of the work is carried out in the factory and is not affected by negativities such as climate.



