Ferhat Keten, Keten Group Chairman of the Board of Directors, stated in his statement to Bloomberg HT that there is a serious risk among developer companies. Keten stated that many housing projects that faced financial difficulties similar to the crisis in 2018 were left unfinished and it took years to re-implement these projects.
Speaking on Bloomberg HT, Ketengrup Chairman Ferhat Keten evaluated the fact that housing prices remained below inflation for the first time since December 2019.
While Keten emphasized that the housing sector problem experienced in 2018 could be repeated, he stated that the housing market is quite stuck. He also added, “There is no demand to finance housing projects, housing prices are quite high compared to the rest of the world.”
Keten said, “We are experiencing a multifaceted crisis struggling with the housing problem all over the world. There have been serious increases in both purchase prices and rents, and this situation has turned into a crisis all over the world. In Turkey, this situation was felt very heavily due to the effect of inflation.”
After the earthquake last year, the demand for moving from old buildings to new buildings became quite intense. This situation affected rental and sales costs. However, many projects are being launched in a time when financing is limited, but there is no demand for housing to finance them, indicating a complicated period.
Ferhat Keten, Keten Group Chairman of the Board of Directors, stated that there is a serious risk among developer companies and said, Facing financial difficulties similar to the crisis in 2018 He stated that many remaining housing projects were left unfinished.
Keten said, “It took years for them to get back into action and get back on their feet, and there were long legal disputes. I think the existence of such a risk will gradually increase in the next 1-2 years. Here, companies need to plan a long-term cash flow.”
