Op. Dr. Kenan Kalı, Chairman of Gözde Group:
“The Rate-Cutting Process Should Be Gradual”
The government has implemented tight monetary policies to combat inflation. As a result, interest rates are currently high and access to housing has become more difficult; both construction costs and borrowing costs have risen, compounding the challenge of purchasing a home. Market expectations still point to a decline in policy rates during the second half of 2025. We believe this decline must be slow and sustainable—rates should be reduced gradually and in a stable manner.
Insufficient housing production in the construction sector is negatively affecting contractors, investors, and citizens alike. Housing has become one of Turkey’s most pressing issues. The lack of new housing supply is driving up rents, forcing people to spend a large share of their income on shelter. If interest rates are cut gradually, the construction industry will enter a new phase in the second half of 2025; although the calendar will read summer, the sector will experience a spring-like revival.