Gürcafer: Creating our development plans is a must

Cafer Gürcafer, President of the Cyprus Turkish Building Contractors Association (CTBCA), evaluated the effects of the pandemic on the country’s economy in general, and in particular, the construction sector.

Noting that there is a need for a socio-economic development plan based on science in the country, Gürcafer said that the Law on Interest and the law intended for restructuring of debts to the state and banks should be enacted.

CTBCA President Gürcafer made highly significant statements by taking part in the show, Parapolitik, broadcast on Cyprus TV.

“There is serious level of excess stock in construction”

KTİMB President Cafer Gürcafer said that construction has continued since the day the pandemic began in the TRNC, except for the period during the lockdown, and that there is currently a serious level of excess stock.

Saying “We are at the point of marketing now”, Gürcafer noted that there is no action in this regard yet. Gürcafer said, “We are currently focused on not missing out on the 2021 season. We are doing whatever we need to do in order to not lose the season.”

Based on a question from the program’s presenter Ali Çatal, Gürcafer asserted that Turkey is a large-scale country with a lack of planning in many sectors, he noted that a housing sector based on a supply-demand balance was also absent.

Cafer Gürcafer stated that construction is carried out within a framework of a supply and demand balance in the TRNC, and that there are on average a 10 thousand dwellings being built per year in the country, 5 thousand of which are based on the demand arising from the need for housing in the domestic market, another 2 thousand relate to the repatriating Turkish Cypriots living abroad. Stating that 2-3 thousand dwellings per year are the ones bought by foreigners for retirement and vacation purposes, Gürcafer said, “The number of houses built per year would have been towards meeting this overall demand. When the pandemic suddenly broke out, this year’s projects and the projects planned for the year next merged and thus the excess stock emerged,” he said.

Cafer Gürcafer said, “If the building work for those dwellings stops midway, it will turn into a disaster both in terms of employment and loss of national wealth.”

“Creating our development plans is a must”

CTBCA President Cafer Gürcafer stated that after the steep drop in 2007, the Anan Plan period and the sharp crash after the Orams Case, the construction sector was considerably more experienced, and that the sector met this crisis in a much more calm and organized manner.

Gürcafer stated that during the pandemic, there has been anxiety and cash shortages in the sector, but no bankruptcies occurred.

Gürcafer said, “Of course, here is the thing; the season is about to start but we do not have development plans in our country. For example, if you declare tomorrow; ‘I am building 10 thousand houses here’, there is no law that prevents you from doing so. Therefore, we need to create our development plans, determine our housing strategy and plan where these houses will be built regionally, as per that housing strategy.”

Gürcafer stated that, “We need to plan for a balance of supply and demand and harmonize that plan with nature and the economy”, and continued as follows:

“We have to build our housing structure accordingly. This is the self-criticism of a shortcoming. Generally, the country has had no development plans. By developing this planning; a top-down national physical plan, zoning plans in accordance with this national physical plan, economic policies in keeping with these zoning plans… this goes on and on. There is a danger as we do not have this, and this danger could give birth to a supply and demand imbalance. However, because we are institutionalised and organized, we are guiding this process for the better as much as possible despite this deficiency and gap. But this must be put on a legal basis. ”

“Stability Matters”

Cafer Gürcafer emphasized that one of the major problems faced by the building sector is the instability which is due to a lack of continuity of the governments.

Gürcafer said, “The government changes just at the stage of realizing a project. We have to start from scratch and one way or another we cannot conclude our projects,” he said.

Stating that the purchasing power of people has decreased significantly with the increase in the value of the foreign currency, Gürcafer said, “Yet there is an alternative. Either you will increase the purchasing power of our people, that is to say; If he receives 10 thousand TL, you will give the civil servant 10-12 thousand TL. We cannot do this. In that case you will have to build housing according to people’s purchasing power. So, you will need to lower the housing costs. There is a way to do this. Solely for social housing purposes, there are methods that will reduce the cost, make it cheaper and simplify it for the people who will buy their first home. You can do this by employing such methods without negatively impacting the build-and-sell sector, which contributes to the country’s economy significantly. This could be done without abusing it. The Housing Authority as an organization emerged for urban transformation in Turkey, but became the largest building contractor over time. Many companies went bankrupt because of this. It should not be that way either.’’

Gürcafer continued his words as follows:

“Conditions are very different in Turkey. Slums in Turkey were a bleeding wound anyway, and no other method to resolve the problem was likely other than it being done by the State whereas it was not possible for us to have the same. Nevertheless, we also know that a model can be developed in which the state and CTBCA can collaborate in order to meet the housing needs of our people while not negatively affecting the build-and-sell sector.

We shared this with all the governments, but the problem is that the government changes just as you are getting somewhere. You then have to explain this to the new government as well. The incoming one takes its seat in an anxious state anyway. While there is that anxiety caused by the fear of making a mistake, the congress gets on the agenda, the election appears on the agenda, to be dismissed or not to dismissed from office, the situation about whether the cabinet changes or not arises, and the realization of such ideas is left to another spring. Of course, this cannot go on like this. Of course, with the distress caused by the pandemic, discussions around the need to question the system has started in the country. We will consider all of them in a holistic way.”

“In some areas, there is a need for a legislative, executive touch”

CTBCA President Cafer Gürcafer stated that the association has approximately 40 employees and that it is an institution with an expert in every topic, and that all studies undertaken by CTBCA are scientific.

Stating that, “Our association has a lawyer, architect, engineer, city planner, economist, financier and experts in many other fields. Therefore, studies of CTBCA are very scientific studies,” Gürcafer went on to say, “We do not undertake these studies for ourselves either. We know the structure of our state. If the structure is problematic, you cannot progress by constantly criticizing it, and you also have to help. Therefore, we prepare these studies and share them with every outfit that comes to govern the country. But we cannot bring these things to life alone. In some areas, there is a need for a legislative, executive touch.”

CTBCA President Cafer Gürcafer said, “For example, the impact of the land cost per dwelling is 10-15 thousand pounds. If the state grants this land, a dwelling price of 60 thousand pounds automatically drops to 45 thousand pounds. Construction materials take a 20 percent effect from customs duties upon entry to the country and when you reduce that, the cost decreases to 30, 28. You can bring that down further when you provide some support from the Interest Rate Difference Fund, but these will not happen without a Council of Ministers decision and legal rearrangement.

“The main objective should be to get a community that has come out of a war back on its feet”

CTBCA President Gürcafer also noted that the Law on Interest and the law for the restructuring of debts to the state and banks should be introduced.

Gürcafer said: “Actually, this Law on Interest has been ready for many years, but it could not be introduced into law. Today, we came together as the organizations of the real economic sectors. 90 percent of this country will stand behind this Law on Interest and will stand behind the restructuring law. This law will be prepared on a scientific basis together with economists and bankers. It will be a law that will benefit the banking sector and our economy and save all businesses. The main objective should not be to make exorbitant profits but to get a community that has come out of a war back on its feet.”