According to the “Ekonomi Gazetesi”, more than 130,000 buildings need to be constructed in the earthquake zone, and an estimated 535,000 residential units are expected to be built in these buildings. The total cost, including the infrastructure and sewage system construction, is estimated to be around 843.5 billion TL. The estimated cost is equivalent to 30% of the 2023 budget deficit, and about 18% of the 4.47 trillion TL budget expenditure.
Infrastructure Costs are as Expensive as Rough Construction Costs per Square Meter
According to the 2023 construction index, the cost per square meter of buildings varies between 6,000 to 8,000 TL, while the cost per square meter of buildings exceeds 10,000 TL when the infrastructure, such as kitchen cabinets, parquet flooring, toilets, etc., are added. The cost per square meter for the construction of public buildings such as healthcare facilities, schools, mosques, etc., is over 15,000 TL.
More Than 500,000 Housing Units are Planned to be Demolished
Damage assessment studies revealed that 384,545 residential units in 105,000 buildings need to be demolished. When the studies are completed, it is expected that the number of buildings that need to be demolished or have already been destroyed due to severe damage will increase to 130,000, and the number of residential units will reach 535,000. As research continues, it is likely that these numbers will increase beyond expectations. At the same time, very strong aftershocks are occurring in the region, and the number of buildings that collapse and become severely damaged beyond repair is increasing day by day.
The Earthquake Zone Accounts for One-Third of the Steel Sector’s Production Capacity
According to Virtus Steel CEO Adnan Öztürk, one-third of the steel sector’s production capacity is provided by this region, and the only company in the flat steel sector without production in the earthquake zone is EREGLI. According to Öztürk, more than 17 million tons of steel were produced annually in the İskenderun region alone. Öztürk mentioned that there are also logistical uncertainties, as the damage assessments of ports have not been completed, and their condition is uncertain.
The Future of Steel Producers in the Region is Uncertain
Öztürk stated that companies are eager to resume production as soon as possible, but preparing a budget and production planning will be very challenging after the earthquake, and there may be many uncertainties. Öztürk stated that transparent rehabilitation periods for factories are needed and a macro production plan needs to be created to heal the wounds together. Öztürk stated that Ereğli is currently the only steel producer that can use its production capacity with 100% efficiency, but it is not possible for Ereğli alone to meet this demand.
Around 56 million square meters of buildings need to be constructed to rebuild the 535,000 residential units. Excluding infrastructure costs, the construction cost of these buildings amounts to 562.4 billion TL. When social facilities and infrastructure are included, the construction cost is expected to be around 843.5 billion TL, according to the “Ekonomi Gazetesi”.
