Although expanding in 2021, the Turkish construction industry has been relatively sluggish; it is estimated to have grown by 2.7%, following a decline of 5.5% in 2020. The estimate for growth in 2021 has been revised downwards from a previous projection of 5.6%, owing to major challenges faced by the industry in the second half of the year, as a result of increased prices for construction materials amid the country’s currency crisis, and the suspension of development projects. According to the Turkish Statistical Institute (TurkStat), the construction industry’s value add declined by 6.7% year on year (YoY) in Q3 2021, preceded by year-on-year (Y-o-Y) expansions of 3.3% in Q2 and 3.1% in Q1 2021. In addition, the country’s gross fixed capital investments declined by 2.4% in the third quarter of 2021.
Assuming greater macroeconomic stability in 2022, the industry is expected to post another relatively low growth rate of 2.8%, before expanding by an annual average of 5.4% over the remainder of the forecast period (2023-2025), driven by investment in renewable energy, education, and transport infrastructure. The government plans to build 2,000km of high-speed rail lines from Kars in northeast Turkey to Edirne in the westernmost part of the country by 2023; this project is being partially financed by China. The government also aims to increase the share of renewable energy in electricity generation to 38.8% by 2023, compared to 32.5% in 2018. In addition, the government’s plan to construct 400,000 dwellings by 2023 will also contribute to the industry's development. There are downside risks, however, as construction costs have soared in recent months, with the latest index on construction costs showing a Y-o-Y increase of 41.9% in October 2021, with materials costs rising by 50.9% and labor costs rising by 22.6%. This reflects the sharp depreciation in the Lira alongside an increase in demand and wider global supply chain disruptions.
The publisher’s Construction in Turkey - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information, and insights into the Turkish construction industry, including:
This report provides a comprehensive analysis of the construction industry in Turkey. It provides:
Assuming greater macroeconomic stability in 2022, the industry is expected to post another relatively low growth rate of 2.8%, before expanding by an annual average of 5.4% over the remainder of the forecast period (2023-2025), driven by investment in renewable energy, education, and transport infrastructure. The government plans to build 2,000km of high-speed rail lines from Kars in northeast Turkey to Edirne in the westernmost part of the country by 2023; this project is being partially financed by China. The government also aims to increase the share of renewable energy in electricity generation to 38.8% by 2023, compared to 32.5% in 2018. In addition, the government’s plan to construct 400,000 dwellings by 2023 will also contribute to the industry's development. There are downside risks, however, as construction costs have soared in recent months, with the latest index on construction costs showing a Y-o-Y increase of 41.9% in October 2021, with materials costs rising by 50.9% and labor costs rising by 22.6%. This reflects the sharp depreciation in the Lira alongside an increase in demand and wider global supply chain disruptions.
The publisher’s Construction in Turkey - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information, and insights into the Turkish construction industry, including:
- The Turkish construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Turkish construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Turkey. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Turkey, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
