From 2005 through the first half of 2007, construction was one of the most important growth sectors in the Turkish economy. Private con- struction projects and public investments supported this growth. But, by the end of 2007, construction activity stagnated. Rising prices of commodities, including iron, copper, steel and cement have con- tributed to increased construction costs. The real estate market has also seen a slowdown in growth since late 2006, affected success- ively by the economic turmoil of May-June 2006, an unease in domestic markets due to political tensions surrounding the 2007 elections, global market volatility due to the subprime mortgage crisis.
