Explaining spatial variation in housing construction activity in Turkey
Abstract
In Turkey, there has been a strong policy narrative that has emphasized the importance of construction activity as a driver of economic growth. This has given shape to a central state-led policy regime that has sought to ensure that planners and other urban policy makers develop plans and strategies that support construction activity. Against this backdrop, and a recent history of uneven spatial development, this paper seeks to understand what this policy imperative might mean for housing construction activity in different provinces. It seeks to reflect on both the relationship between the state and the market, and the interaction between state policies, economic drivers and levels of construction activity. The evidence presented in the paper suggests that uneven spatial development might be explained in different ways in different provinces. Although, in many cases, patterns of construction activity are consistent with economic fundamentals, there are important exceptions in some regions where arguably activity levels are at odds with prior expectations.
Keywords:
housing construction, spatial analysis, Turkey, economic growth, planning policyHow to Cite
Alkay, E., Watkins, C., & Keskin, B. (2018). Explaining spatial variation in housing construction activity in Turkey. International Journal of Strategic Property Management, 22(2), 119-130. https://doi.org/10.3846/ijspm.2018.443
Share
License
Copyright (c) 2018 The Author(s). Published by Vilnius Gediminas Technical University.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adams, D., & Tiesdell, S. (2010). Planners as market actors: rethinking state–market relations in land and property. Planning Theory & Practice, 11(2), 187-207. <a href= "https://doi.org/10.1080/14649351003759631" target="_blank" rel="noopener"> https://doi.org/10.1080/14649351003759631</a>
Adams, D., & Watkins, C. (2014). The value of planning. London: Royal Town Planning Institute.
Barras, R. (1984). The office development cycle in London. Land Development Studies, 1, 35-50. <a href= "https://doi.org/10.1080/02640828408723866" target="_blank" rel="noopener"> https://doi.org/10.1080/02640828408723866</a>
Barras, R. (2009). Building cycles: growth and instability. Oxford: Wiley-Blackwell. <a href= "https://doi.org/10.1002/9781444310009" target="_blank" rel="noopener"> https://doi.org/10.1002/9781444310009</a>
Begg, I. (Ed.). (2002). Urban competitiveness: policies for dynamic cities. Bristol: The Policy Press.
Bon, R. (1992). The future of international construction. Habitat International, 16, 119-128. <a href= "https://doi.org/10.1016/0197-3975(92)90068-A" target="_blank" rel="noopener"> https://doi.org/10.1016/0197-3975(92)90068-A</a>
Bramley, G. (1998). Measuring planning: indicators of planning restraint and its impact on housebuilding and house price. Environment and Planning A, 25(7), 1021-1051. <a href= "https://doi.org/10.1068/a251021" target="_blank" rel="noopener"> https://doi.org/10.1068/a251021</a>
Bramley, G. (2003). Planning regulation and housing supply in a market system. Housing Economics and Public Policy. United Kingdom: Blackwell.
Bramley, G. (2013). Housing market models and planning. Town Planning Review, 84(1), 9-35. <a href= "https://doi.org/10.3828/tpr.2013.2" target="_blank" rel="noopener"> https://doi.org/10.3828/tpr.2013.2</a>
Bramley, G., & Watkins, C. (1995). Circular projections: house-hold growth, housing development and the household projections. Council for the Protection of Rural England, London.
Buckley, K. A. H. (1952). Urban building and real estate fluctuations in Canada. Canadian Journal of Economics and Political Science, 18(1), 41-62. <a href= "https://doi.org/10.2307/138533" target="_blank" rel="noopener"> https://doi.org/10.2307/138533</a>
Celik, O. (2013). Changing forms and strategies of state intervention in the housing of the poor in Istanbul. Unpublished PhD Thesis, University of Sheffield.
Coskun, Y. (2011). The global financial crisis and the Turkish housing market. Housing Finance International, 25(3), 6-14.
Dawkins, C. J., & Nelson, A. C. (2002). Urban containment policies and housing prices: an international comparison with implications for future research. Land Use Policy, 19, 1-12. <a href= "https://doi.org/10.1016/S0264-8377(01)00038-2" target="_blank" rel="noopener"> https://doi.org/10.1016/S0264-8377(01)00038-2</a>
DiPasquale, D., & Wheaton, W. C. (1996). Urban economics and real estate markets. Englewood Cliffs, NJ: Prentice Hall.
Eraydin, A., & Tasan-Kok, T. (2014). State response to contemporary urban movements in Turkey: a critical overview of state entrepreneurialism and authoritarian interventions. Antipode, 46(1), 110-129. <a href= "https://doi.org/10.1111/anti.12042" target="_blank" rel="noopener"> https://doi.org/10.1111/anti.12042</a>
Fainstein, S. S. (2001). The city builders: property development in New York and London, 1980–2000. University Press of Kansas.
Fisher, J. D. (1992). Integrating research on markets for space and capital. Real Estate Economics, 20, 161-180. <a href= "https://doi.org/10.1111/1540-6229.00578" target="_blank" rel="noopener"> https://doi.org/10.1111/1540-6229.00578</a>
Grenadier, S. R. (1995). The persistence of real estate cycles. Journal of Real Estate Finance and Economics, 10, 95-119. <a href= "https://doi.org/10.1007/BF01096984" target="_blank" rel="noopener"> https://doi.org/10.1007/BF01096984</a>
Henneberry, J., McGough, T., & Mouzakis, F. (2005a). Estimating the impact of planning on commercial property markets. In D. Adams, C. Watkins, M. White (Eds.), Planning, Public Policy and Property Markets (pp. 105-126). Oxford: Blackwell. <a href= "https://doi.org/10.1002/9780470757789.ch6" target="_blank" rel="noopener"> https://doi.org/10.1002/9780470757789.ch6</a>
Henneberry, J., McGough, T., & Mouzakis, F. (2005b). The impact of planning on local business rents. Urban Studies, 42, 471-502. <a href= "https://doi.org/10.1080/00420980500035261" target="_blank" rel="noopener"> https://doi.org/10.1080/00420980500035261</a>
Henneberry, J., McGough, T., Rowley, S., & Smith, R. (2003). The economic consequences of planning for business: planning and business rents. Final Report to ODPM, Department of Town and Regional Planning, University of Sheffield, Sheffield.
Jackson, C. (2006). Retail planning policy change and institutional investment. Regional Studies, 40, 555-561. <a href= "https://doi.org/10.1080/00343400600757734" target="_blank" rel="noopener"> https://doi.org/10.1080/00343400600757734</a>
Jackson, C., & Watkins, C. (2005). Planning policy and retail property markets: measuring the dimensions of planning intervention. Urban Studies, 42, 1453-1469. <a href= "https://doi.org/10.1080/00420980500150896" target="_blank" rel="noopener"> https://doi.org/10.1080/00420980500150896</a>
Jackson, C., & Watkins, C. (2011). Planning policy and retail property investment. Urban Studies, 48(11), 2321-2338. <a href= "https://doi.org/10.1177/0042098010385157" target="_blank" rel="noopener"> https://doi.org/10.1177/0042098010385157</a>
Jackson, C., & Watkins, C. (2007). Supply-side policies and retail property market performance. Environment and Planning A, 39(5), 1134-1146. <a href= "https://doi.org/10.1068/a38250" target="_blank" rel="noopener"> https://doi.org/10.1068/a38250</a>
Keogh, G. (1994). Use and investment markets in British real estate. Journal of Property Valuation and Investment, 12(4), 58-72. <a href= "https://doi.org/10.1108/14635789410069980" target="_blank" rel="noopener"> https://doi.org/10.1108/14635789410069980</a>
Key, T., Zarkesh, F., MacGregor, B. D., & Nanthakumaran, N. (1994). Understanding the property cycle: economic cycles and property cycles. London: Royal Institution of Chartered Surveyors.
Nanthakumaran, N., Watkins, C., & Orr, A. (2000). Understanding property market dynamics: insights from modelling the supply-side adjustment mechanism. Environment and Planning A, 32(4), 655-672. <a href= "https://doi.org/10.1068/a31176" target="_blank" rel="noopener"> https://doi.org/10.1068/a31176</a>
Renaud, B. (1997). The 1985 to 1994 global real estate cycle: an overview. Journal of Real Estate Literature, 5(1), 13-44. <a href= "https://doi.org/10.1023/A:1008623304689" target="_blank" rel="noopener"> https://doi.org/10.1023/A:1008623304689</a>
Ruddock, L., & Lopes, J. (2006). The construction sector and economic development: the Bon curve. Construction Management and Economics, 24(7), 717-723. <a href= "https://doi.org/10.1080/01446190500435218" target="_blank" rel="noopener"> https://doi.org/10.1080/01446190500435218</a>
Strassmann, P. (1970). The construction sector in economic development. Scottish Journal of Political Economy, 17(3), 390-410. <a href= "https://doi.org/10.1111/j.1467-9485.1970.tb00715.x" target="_blank" rel="noopener"> https://doi.org/10.1111/j.1467-9485.1970.tb00715.x</a>
Sun, Y., Mitra, P., & Simone, A. (2013). The driving forces behind boom and boost in Europe. IMF Working Paper (WP/13/181), International Monetary Fund.
The Banks Association of Turkey. (2015). Consumer loans and housing loans quarterly. Retrieved from <a href= "https://www.tbb.org.tr/en/banks-and-banking-sector-information/data-query-system/21" target="_blank" rel="noopener"> https://www.tbb.org.tr/en/banks-and-banking-sector-information/data-query-system/21</a>
Tsolacos, S., McGough, T., & Keogh, G. (1998). Modelling use, investment and development in the British office market. Environment and Planning A, 30(8), 1409-1427. <a href= "https://doi.org/10.1068/a301409" target="_blank" rel="noopener"> https://doi.org/10.1068/a301409</a>
Turin, D. A. (1969). The construction industry: its economic significance and its role in development. London: University College, Environmental Research Group.
Turk, S. S., & Korthals Altes, W. K. (2010). Institutional capacities in the land development for housing on greenfield sites in Istanbul. Habitat International, 34(2), 183-195. <a href= "https://doi.org/10.1016/j.habitatint.2009.09.002" target="_blank" rel="noopener"> https://doi.org/10.1016/j.habitatint.2009.09.002</a>
Turkish Central Bank. (2015a). Hedonic housing price indexes, July 2015. Retrieved from <a href= "https://evds2.tcmb.gov.tr/index.php?/evds/dashboard/310" target="_blank" rel="noopener"> https://evds2.tcmb.gov.tr/index.php?/evds/dashboard/310</a>
Turkish Central Bank. (2015b). Electronic data center, July 2015. Retrieved from <a href= "https://evds2.tcmb.gov.tr/" target="_blank" rel="noopener"> https://evds2.tcmb.gov.tr/</a>
Turkish Central Bank. (2015c). Monetary policy and inflation developments, July 2015. Retrieved from <a href= "http://www.tcmb.gov.tr/wps/wcm/connect/TCMB+EN/TCMB+EN/Main+Menu/STATISTICS/Chart+Gallery/" target="_blank" rel="noopener"> http://www.tcmb.gov.tr/wps/wcm/connect/TCMB+EN/TCMB+EN/Main+Menu/STATISTICS/Chart+Gallery/</a>
Turkish Statistical Institute. (2015a). Gross Domestic Product at current prices by kind of economic activity, July 2015. Retrieved from <a href= "http://www.turkstat.gov.tr/PreTablo.do?alt_id=1108" target="_blank" rel="noopener"> http://www.turkstat.gov.tr/PreTablo.do?alt_id=1108</a>
Turkish Statistical Institute. (2015b). Construction labor input indices, July 2015. Retrieved from <a href= "http://www.turkstat.gov.tr/PreTablo.do?alt_id=1023" target="_blank" rel="noopener"> http://www.turkstat.gov.tr/PreTablo.do?alt_id=1023</a>
Turkish Statistical Institute. (2015c). Regional Gross Values Added at current prices, July 2015. Retrieved from <a href= "https://biruni.tuik.gov.tr/medas/?kn=116&locale=en" target="_blank" rel="noopener"> https://biruni.tuik.gov.tr/medas/?kn=116&locale=en</a>
Turkun, A. (2011). Urban regeneration and hegemonic power relationships. International Planning Studies, 16(1), 61-72. <a href= "https://doi.org/10.1080/13563475.2011.552473" target="_blank" rel="noopener"> https://doi.org/10.1080/13563475.2011.552473</a>
White, M., & Allmendinger, P. (2003). Land-use planning and housing market: a comparative review of the UK and the USA. Urban Studies, 40, 953-972. <a href= "https://doi.org/10.1080/0042098032000074263" target="_blank" rel="noopener"> https://doi.org/10.1080/0042098032000074263</a>
Wong, C., & Watkins, C. (2009). Conceptualising spatial planning outcomes: towards and integrative measurement framework. Town Planning Review, 80(4–5), 481-516. <a href= "https://doi.org/10.3828/tpr.2009.8" target="_blank" rel="noopener"> https://doi.org/10.3828/tpr.2009.8</a>
Adams, D., & Watkins, C. (2014). The value of planning. London: Royal Town Planning Institute.
Barras, R. (1984). The office development cycle in London. Land Development Studies, 1, 35-50. <a href= "https://doi.org/10.1080/02640828408723866" target="_blank" rel="noopener"> https://doi.org/10.1080/02640828408723866</a>
Barras, R. (2009). Building cycles: growth and instability. Oxford: Wiley-Blackwell. <a href= "https://doi.org/10.1002/9781444310009" target="_blank" rel="noopener"> https://doi.org/10.1002/9781444310009</a>
Begg, I. (Ed.). (2002). Urban competitiveness: policies for dynamic cities. Bristol: The Policy Press.
Bon, R. (1992). The future of international construction. Habitat International, 16, 119-128. <a href= "https://doi.org/10.1016/0197-3975(92)90068-A" target="_blank" rel="noopener"> https://doi.org/10.1016/0197-3975(92)90068-A</a>
Bramley, G. (1998). Measuring planning: indicators of planning restraint and its impact on housebuilding and house price. Environment and Planning A, 25(7), 1021-1051. <a href= "https://doi.org/10.1068/a251021" target="_blank" rel="noopener"> https://doi.org/10.1068/a251021</a>
Bramley, G. (2003). Planning regulation and housing supply in a market system. Housing Economics and Public Policy. United Kingdom: Blackwell.
Bramley, G. (2013). Housing market models and planning. Town Planning Review, 84(1), 9-35. <a href= "https://doi.org/10.3828/tpr.2013.2" target="_blank" rel="noopener"> https://doi.org/10.3828/tpr.2013.2</a>
Bramley, G., & Watkins, C. (1995). Circular projections: house-hold growth, housing development and the household projections. Council for the Protection of Rural England, London.
Buckley, K. A. H. (1952). Urban building and real estate fluctuations in Canada. Canadian Journal of Economics and Political Science, 18(1), 41-62. <a href= "https://doi.org/10.2307/138533" target="_blank" rel="noopener"> https://doi.org/10.2307/138533</a>
Celik, O. (2013). Changing forms and strategies of state intervention in the housing of the poor in Istanbul. Unpublished PhD Thesis, University of Sheffield.
Coskun, Y. (2011). The global financial crisis and the Turkish housing market. Housing Finance International, 25(3), 6-14.
Dawkins, C. J., & Nelson, A. C. (2002). Urban containment policies and housing prices: an international comparison with implications for future research. Land Use Policy, 19, 1-12. <a href= "https://doi.org/10.1016/S0264-8377(01)00038-2" target="_blank" rel="noopener"> https://doi.org/10.1016/S0264-8377(01)00038-2</a>
DiPasquale, D., & Wheaton, W. C. (1996). Urban economics and real estate markets. Englewood Cliffs, NJ: Prentice Hall.
Eraydin, A., & Tasan-Kok, T. (2014). State response to contemporary urban movements in Turkey: a critical overview of state entrepreneurialism and authoritarian interventions. Antipode, 46(1), 110-129. <a href= "https://doi.org/10.1111/anti.12042" target="_blank" rel="noopener"> https://doi.org/10.1111/anti.12042</a>
Fainstein, S. S. (2001). The city builders: property development in New York and London, 1980–2000. University Press of Kansas.
Fisher, J. D. (1992). Integrating research on markets for space and capital. Real Estate Economics, 20, 161-180. <a href= "https://doi.org/10.1111/1540-6229.00578" target="_blank" rel="noopener"> https://doi.org/10.1111/1540-6229.00578</a>
Grenadier, S. R. (1995). The persistence of real estate cycles. Journal of Real Estate Finance and Economics, 10, 95-119. <a href= "https://doi.org/10.1007/BF01096984" target="_blank" rel="noopener"> https://doi.org/10.1007/BF01096984</a>
Henneberry, J., McGough, T., & Mouzakis, F. (2005a). Estimating the impact of planning on commercial property markets. In D. Adams, C. Watkins, M. White (Eds.), Planning, Public Policy and Property Markets (pp. 105-126). Oxford: Blackwell. <a href= "https://doi.org/10.1002/9780470757789.ch6" target="_blank" rel="noopener"> https://doi.org/10.1002/9780470757789.ch6</a>
Henneberry, J., McGough, T., & Mouzakis, F. (2005b). The impact of planning on local business rents. Urban Studies, 42, 471-502. <a href= "https://doi.org/10.1080/00420980500035261" target="_blank" rel="noopener"> https://doi.org/10.1080/00420980500035261</a>
Henneberry, J., McGough, T., Rowley, S., & Smith, R. (2003). The economic consequences of planning for business: planning and business rents. Final Report to ODPM, Department of Town and Regional Planning, University of Sheffield, Sheffield.
Jackson, C. (2006). Retail planning policy change and institutional investment. Regional Studies, 40, 555-561. <a href= "https://doi.org/10.1080/00343400600757734" target="_blank" rel="noopener"> https://doi.org/10.1080/00343400600757734</a>
Jackson, C., & Watkins, C. (2005). Planning policy and retail property markets: measuring the dimensions of planning intervention. Urban Studies, 42, 1453-1469. <a href= "https://doi.org/10.1080/00420980500150896" target="_blank" rel="noopener"> https://doi.org/10.1080/00420980500150896</a>
Jackson, C., & Watkins, C. (2011). Planning policy and retail property investment. Urban Studies, 48(11), 2321-2338. <a href= "https://doi.org/10.1177/0042098010385157" target="_blank" rel="noopener"> https://doi.org/10.1177/0042098010385157</a>
Jackson, C., & Watkins, C. (2007). Supply-side policies and retail property market performance. Environment and Planning A, 39(5), 1134-1146. <a href= "https://doi.org/10.1068/a38250" target="_blank" rel="noopener"> https://doi.org/10.1068/a38250</a>
Keogh, G. (1994). Use and investment markets in British real estate. Journal of Property Valuation and Investment, 12(4), 58-72. <a href= "https://doi.org/10.1108/14635789410069980" target="_blank" rel="noopener"> https://doi.org/10.1108/14635789410069980</a>
Key, T., Zarkesh, F., MacGregor, B. D., & Nanthakumaran, N. (1994). Understanding the property cycle: economic cycles and property cycles. London: Royal Institution of Chartered Surveyors.
Nanthakumaran, N., Watkins, C., & Orr, A. (2000). Understanding property market dynamics: insights from modelling the supply-side adjustment mechanism. Environment and Planning A, 32(4), 655-672. <a href= "https://doi.org/10.1068/a31176" target="_blank" rel="noopener"> https://doi.org/10.1068/a31176</a>
Renaud, B. (1997). The 1985 to 1994 global real estate cycle: an overview. Journal of Real Estate Literature, 5(1), 13-44. <a href= "https://doi.org/10.1023/A:1008623304689" target="_blank" rel="noopener"> https://doi.org/10.1023/A:1008623304689</a>
Ruddock, L., & Lopes, J. (2006). The construction sector and economic development: the Bon curve. Construction Management and Economics, 24(7), 717-723. <a href= "https://doi.org/10.1080/01446190500435218" target="_blank" rel="noopener"> https://doi.org/10.1080/01446190500435218</a>
Strassmann, P. (1970). The construction sector in economic development. Scottish Journal of Political Economy, 17(3), 390-410. <a href= "https://doi.org/10.1111/j.1467-9485.1970.tb00715.x" target="_blank" rel="noopener"> https://doi.org/10.1111/j.1467-9485.1970.tb00715.x</a>
Sun, Y., Mitra, P., & Simone, A. (2013). The driving forces behind boom and boost in Europe. IMF Working Paper (WP/13/181), International Monetary Fund.
The Banks Association of Turkey. (2015). Consumer loans and housing loans quarterly. Retrieved from <a href= "https://www.tbb.org.tr/en/banks-and-banking-sector-information/data-query-system/21" target="_blank" rel="noopener"> https://www.tbb.org.tr/en/banks-and-banking-sector-information/data-query-system/21</a>
Tsolacos, S., McGough, T., & Keogh, G. (1998). Modelling use, investment and development in the British office market. Environment and Planning A, 30(8), 1409-1427. <a href= "https://doi.org/10.1068/a301409" target="_blank" rel="noopener"> https://doi.org/10.1068/a301409</a>
Turin, D. A. (1969). The construction industry: its economic significance and its role in development. London: University College, Environmental Research Group.
Turk, S. S., & Korthals Altes, W. K. (2010). Institutional capacities in the land development for housing on greenfield sites in Istanbul. Habitat International, 34(2), 183-195. <a href= "https://doi.org/10.1016/j.habitatint.2009.09.002" target="_blank" rel="noopener"> https://doi.org/10.1016/j.habitatint.2009.09.002</a>
Turkish Central Bank. (2015a). Hedonic housing price indexes, July 2015. Retrieved from <a href= "https://evds2.tcmb.gov.tr/index.php?/evds/dashboard/310" target="_blank" rel="noopener"> https://evds2.tcmb.gov.tr/index.php?/evds/dashboard/310</a>
Turkish Central Bank. (2015b). Electronic data center, July 2015. Retrieved from <a href= "https://evds2.tcmb.gov.tr/" target="_blank" rel="noopener"> https://evds2.tcmb.gov.tr/</a>
Turkish Central Bank. (2015c). Monetary policy and inflation developments, July 2015. Retrieved from <a href= "http://www.tcmb.gov.tr/wps/wcm/connect/TCMB+EN/TCMB+EN/Main+Menu/STATISTICS/Chart+Gallery/" target="_blank" rel="noopener"> http://www.tcmb.gov.tr/wps/wcm/connect/TCMB+EN/TCMB+EN/Main+Menu/STATISTICS/Chart+Gallery/</a>
Turkish Statistical Institute. (2015a). Gross Domestic Product at current prices by kind of economic activity, July 2015. Retrieved from <a href= "http://www.turkstat.gov.tr/PreTablo.do?alt_id=1108" target="_blank" rel="noopener"> http://www.turkstat.gov.tr/PreTablo.do?alt_id=1108</a>
Turkish Statistical Institute. (2015b). Construction labor input indices, July 2015. Retrieved from <a href= "http://www.turkstat.gov.tr/PreTablo.do?alt_id=1023" target="_blank" rel="noopener"> http://www.turkstat.gov.tr/PreTablo.do?alt_id=1023</a>
Turkish Statistical Institute. (2015c). Regional Gross Values Added at current prices, July 2015. Retrieved from <a href= "https://biruni.tuik.gov.tr/medas/?kn=116&locale=en" target="_blank" rel="noopener"> https://biruni.tuik.gov.tr/medas/?kn=116&locale=en</a>
Turkun, A. (2011). Urban regeneration and hegemonic power relationships. International Planning Studies, 16(1), 61-72. <a href= "https://doi.org/10.1080/13563475.2011.552473" target="_blank" rel="noopener"> https://doi.org/10.1080/13563475.2011.552473</a>
White, M., & Allmendinger, P. (2003). Land-use planning and housing market: a comparative review of the UK and the USA. Urban Studies, 40, 953-972. <a href= "https://doi.org/10.1080/0042098032000074263" target="_blank" rel="noopener"> https://doi.org/10.1080/0042098032000074263</a>
Wong, C., & Watkins, C. (2009). Conceptualising spatial planning outcomes: towards and integrative measurement framework. Town Planning Review, 80(4–5), 481-516. <a href= "https://doi.org/10.3828/tpr.2009.8" target="_blank" rel="noopener"> https://doi.org/10.3828/tpr.2009.8</a>
View article in other formats
CrossMark check
Published
2018-03-23
Issue
Section
Articles
Copyright
Copyright (c) 2018 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Alkay, E., Watkins, C., & Keskin, B. (2018). Explaining spatial variation in housing construction activity in Turkey. International Journal of Strategic Property Management, 22(2), 119-130. https://doi.org/10.3846/ijspm.2018.443