Osman İlgen: Signals of Contraction and Rebalancing in the Construction Sector in the Second Quarter
While the construction sector contracted by 1.9 percent in the second quarter, high interest rates complicate investment decisions and reduce new permits.
Saint-Gobain Construction Chemicals Turkey and Central Asia Vice President Osman İlgen stated that after a long period of growth, the construction sector contracted by 1.9 percent in the second quarter, pointing to a rebalancing process.
In his assessment to Bloomberg HT, Saint-Gobain Construction Chemicals Turkey and Central Asia Vice President Osman İlgen stated that the construction sector recorded uninterrupted growth for 14 quarters and that this performance continued in the first quarter of 2026. However, he noted that the sector experienced a 1.9 percent decline in the second quarter.
Stating that high interest rates complicate investment decisions and put pressure on housing prices, İlgen emphasized that the decrease in new building permits is an important indicator for the future period. Conveying that this situation indicates that completed projects may be replaced by a smaller number of new projects in the upcoming period, İlgen expressed that despite all the challenges, the construction sector has the capacity for a rapid recovery.