Turkiye Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q3 2026)

Summary

The analyst revised down the growth forecast for the Turkish construction industry for 2026 from its Q2 2026 forecast of 5.5% to an annual growth of 2% in Q3 2026 update. This downward revision reflects weaker construction activity in recent quarters, as a result of rising construction costs and persistence of high interest rates. According to Turkish Statistical Institute (TurkStat), the construction industry’s value-add fell by 1.9% year on year (YoY) in Q2 2026, down from YoY growth rates of 3.2% in Q1 2026 and 9.1% in Q4 2025. In another setback, construction builders might feel discouraged from taking construction loans due to a high interest rate. In mid-September 2026, Turkey’s central bank maintained the interest rate at 37% for the fifth consecutive meeting of monetary policy committee due to growing uncertainty amid geopolitical developments which might elevate the energy prices in the coming months if geopolitical scenario worsens in the Middle-East region. However, growth in 2026 will be supported by the implementation of the 2026 investment program that was launched in January 2026, under which the government earmarked TRY1.9 trillion ($44.4 billion) for public investment projects in 2026, covering 13,887 initiatives and 3,857 major development projects.

The analyst expects the construction industry to gain momentum by registering an average annual growth of 3.8% from 2027 to 2030, supported by investments in the housing, transport and renewable energy projects. In early September 2026, the Ministry announced its plan to expand the fiber-optic infrastructure (laying physical high-speed data cables) along the nation’s road network from 7,931km in July 2026 to 20,141km by the end of 2053. Moving ahead, the renewable energy sector will be supported by investment under Municipal Renewable Energy Transition Program, a program that outlines Turkish government’s aim to increase the installed solar and wind power capacity from 42.9GW at the end of July 2026 to 120GW in 2035 and achieve carbon neutrality by 2053. This is part of a broader plan of Türkiye’s Vision 2053 which is a long-term strategic road map to make the nation transform into a global hub for sustainable green development, advanced technologies, and economic power by 2053. In addition, the government is aiming to have 20GW of nuclear energy capacity by 2050 compared to no nuclear generation capacity in 2025. In another boost to the construction industry, in line with efforts to replenish the housing stock following recent earthquakes, in June 2026, Turkiye’s Ministry of Environment, Urbanization and Climate Change announced its plan of building 500,000 new housing units covering all 81 provinces of Turkey whose process of delivering to the home owners will commence from March 2027 onwards under the “Housing Project of the Century”, with full completion targeted by the end of 2028.

The analyst’s Construction in Turkiye - Key Trends and Opportunities to 2030 (Q3 2026) 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 Turkiye. It provides:

Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Turkiye, 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 our 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 business strategies using the analyst's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact Us

List of Tables

Table 1: Construction Industry Key Data
Table 2: Turkiye, Key Economic Indicators
Table 3: Turkiye, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: Turkiye, Top Commercial Construction Projects by Value
Table 5: Turkiye, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: Turkiye, Top Industrial Construction Projects by Value
Table 7: Turkiye, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: Turkiye, Top Infrastructure Construction Projects by Value
Table 9: Turkiye, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: Turkiye, Top Energy and Utilities Construction Projects by Value
Table 11: Turkiye, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: Turkiye, Top Institutional Construction Projects by Value
Table 13: Turkiye, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: Turkiye, Top Residential Construction Projects by Value
Table 15: Turkiye, Key Contractors
Table 16: Turkiye, Key Consultants
Table 17: Turkiye Construction Output Value (Real, $ Million)
Table 18: Turkiye Construction Output Value (Nominal, TRY Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: GlobalData Construction Market Definitions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Eastern Europe and Central Asia, Construction Output (Real % Change), 2024-30
Figure 2: Turkiye, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 3: Turkiye, Risk Summary
Figure 4: Turkiye, Risk Regional Comparison
Figure 5: Turkiye, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 6: Turkiye, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 7: Turkiye, Construction Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 8: Turkiye, Gross Fixed Capital Formation in Construction Index (2009=100)
Figure 9: Turkiye, Construction Cost Index (2015=100), Change YoY
Figure 10: Turkiye, Construction Permits, In thousand m2
Figure 11: Turkiye, Building Activity Index and Construction Confidence Index, Seasonally Adjusted
Figure 12: Turkiye, Construction Turnover Index, Seasonal and Calendar Adjusted (2021=100)
Figure 13: Turkiye, Construction Production Index, Seasonal and Calendar Adjusted (2021=100)
Figure 14: Turkiye, Main Factors Limiting Activities in the Construction Industry (%)
Figure 15: Turkiye, Hourly labor Cost Index for Construction workers (2021=100)
Figure 16: Turkiye, Construction Projects Momentum Index
Figure 17: Eastern Europe and Central Asia, Construction Projects Momentum Index
Figure 18: Turkiye, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 19: Turkiye, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 20: Turkiye, Construction permits issued for commercial buildings, in thousand m2
Figure 21: Turkiye, Total Foreign Visitors Arrivals, In Thousands
Figure 22: Turkiye, Retail Sales Volume Index, Seasonal and Calendar Adjusted (2021 = 100)
Figure 23: Turkiye, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 24: Turkiye, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 25: Turkiye, Industrial and Warehouse building (thousand m2)
Figure 26: Turkiye, Manufacturing Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 27: Turkiye, Manufacturing - Capacity Utilization Rate (In%)
Figure 28: Turkiye, Industrial and Manufacturing Production Indices, 2021=100, Seasonally and Calendar Adjusted
Figure 29: Turkiye, Total Export (US$ Million)
Figure 30: Turkiye, Sales of Passenger Cars and Light Commercial Vehicles, In Number
Figure 31: Turkiye, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 32: Turkiye, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 33: Turkiye, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: Turkiye, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: Turkiye, Information and Communication Activities Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 36: Turkiye, Energy production index (2021=100)
Figure 37: Turkiye, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 38: Turkiye, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Turkiye, Value-Add of Public Administration, Education, Human Health and Social Work Activities (TRY Million, 2009 Chain Linked Volume Measures)
Figure 40: Turkiye, Floor Area of Construction Permits Approved for Public Entertainment, Education, Hospital or Institutional Care Buildings (In Thousand m2)
Figure 41: Turkiye, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 42: Turkiye, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 43: Turkiye, Real Estate Activities Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 44: Turkiye, Floor area of residential permits, in thousand m2
Figure 45: Turkiye, Number of House Sales
Figure 46: Turkiye, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 47: Turkiye, Headquarters of Key Consultants (% of Total Project Pipeline)

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