The country's housing sector is currently struggling under intense pressure from rising construction costs, which has had a direct impact on apartment market prices. While the price of construction materials is increasing, buyers are retreating due to the higher apartment prices, creating a state of instability within the sector.
Impact of rising construction costs
Analysts say that the cost per square foot of construction has increased significantly due to the higher prices of materials such as bricks, cement, rods, and sand, as well as increased labor wages. Developers are passing this increased cost burden onto apartment prices, making new projects more expensive than ever before.Buyers retreat from the market
Due to the increase in apartment prices, middle and lower-middle-income buyers are unable to make new decisions about purchasing homes. Consequently, the number of buyers in the housing sector has decreased significantly. This contraction in demand has become another major challenge for the sector, as reduced sales are also disrupting developers' cash flow.Concerns over sector stability
The dual pressure of rising construction costs and buyer contraction has created deep concern among stakeholders regarding the stability of the housing sector. A significant portion believes that if this trend continues, the sector could fall into a deeper crisis, which could also negatively impact the overall economy.Market stakeholders believe that effective initiatives to control the prices of construction materials and ensure easy financial arrangements for buyers are necessary to overcome this situation. However, no concrete steps have been reported on this matter so far.
