Turkey's construction sector is in meltdown

Turkey's construction sector is on the verge of a coma," says Tahir Tellioglu, chairman of the Buildings Contractors Confederation of Turkey (BCCT). This slowdown comes on top of a deepening currency crisis which has seen the Turkish lira lose 40 per cent of its value against the dollar this year. Many construction companies are selling products below cost and are struggling to pay foreign-currency debts.

"70 per cent of all private construction work has stopped or slowed down," said Tahir Tellioglu.

As large infrastructure projects are cancelled or delayed the cement industry is likely to become sucked into the situation. Turkey's backlog of unsold houses have already swelled to around 2m, reports the Wall street Journal.

Domestic cement prices have risen 80 per cent since January 2017, because of the fall in the value of the Turkish lira, says the BCCT.