Housing finance costs in terms of bank guarantees in Turkey; An application in the province of Trabzon

There is a direct interaction between the banking and construction sectors in Turkey. The construction sector needs the banking sector in terms of funding. The banking sector needs the construction sector within the scope of credit allocation and profitability. The banking sector provides credit allocation services to contractor companies related to construction costs, as well as credit allocation services to customers with purchase requests of ready-for-sale houses. In our study, preferring to allocate loans to the land owners for the purpose of creating the project for the owners of the land instead of the financing model which is about the allocation of loans to the buyer in the sale of the construction projects made by the contractor firms has shown that it may yield more efficient results in terms of guarantees and costs. In this study, 1410 firms registered to Trabzon Chamber of Commerce and Industry, which is engaged in construction of housing project in Trabzon, were surveyed. In order to expand the scope of the study and to quantify the costs in the case of Trabzon, a sample construction project including the construction of 12 houses built in the Karşıyaka district of Ortahisar district of Trabzon province was examined and the data were obtained by quantifying the costs.