The situation in Alanya is dire: contractors are drowning in debt.

The sharp decline in housing sales across Alanya and Turkey, combined with exorbitant increases in construction costs, has dragged contractors into deep debt. While many construction firms have come under close scrutiny by banks, industry representatives warn that a wave of bankruptcies and concordats may be imminent.

The prolonged stagnation in the housing market is deeply affecting the construction sector in Alanya. As housing sales fall and housing inventory builds up, astronomical rises in basic costs such as steel, cement, and labor have disrupted the financial balance of contractors. This situation has brought many companies, unable to fulfill their commitments, into conflict with banks.

According to sources in the sector, many construction companies are struggling to repay their loans and have been placed on banks’ “watch lists.” While banks prepare to seize real estate assets used as collateral, contractors are desperately searching for a way out.

Industry representatives emphasize the seriousness of the situation, expressing concern that a wave of concordats and bankruptcies similar to what was once seen in the textile sector could also hit the construction industry.

This grim outlook threatens not only contractors but also the sub-sectors and employment that depend on the construction industry. Experts stress the need for urgent measures to help the sector recover from this crisis. Without incentives to revive housing sales, accessible credit for contractors, and policies to balance rising costs, it may become inevitable for many construction firms in Alanya to shut their doors.