Turkiye Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)

The Turkish construction industry is projected to grow in real terms by 8.1% in 2025, supported by an increase in total foreign direct investment (FDI), gross fixed capital formation (GFCF), and a rise in construction employment, along with rising investments in energy infrastructure; coupled with the government's investment in earthquake-affected areas. According to the Central Bank of the Republic of Türkiye (CBRT), the total FDI inflow in the country grew by 27.1% year on year (YoY), reaching TRY97.7 billion ($6.3 billion) in the first half of 2025. According to Eurostat, the average number of people employed in the construction industry grew by 2.2% YoY in the first half of 2025. In September 2025, the Asian Infrastructure Investment Bank (AIIB) approved a loan worth TRY8.2 billion ($200 million) to finance renewable energy, battery storage, and decarbonization projects. Moreover, in August 2025, a Dutch banking service provider, Dutch Entrepreneurial Development Bank reported that it will provide a loan worth TRY5.8 billion ($141.7 million) to support the green energy projects and related services in Turkiye. However, a decline in non-residential permits issued, recent tariff impositions, higher inflation rates, rising external debt, and a widening foreign trade deficit, may raise uncertainty for the construction industry’s growth over the medium term.
Over the remainder of the forecast period, the Turkish construction industry is expected to grow at an annual average rate of 3.9% from 2026 to 2029, supported by investments in energy, industrial, and infrastructure projects. The government aims to expand Turkiye’s railway network from 13,919km in 2024 to 17,500km by 2028. In line with this, in August 2025, the construction work was started on the Kars-Iğdır-Aralık-Dilucu railway line project, which involves the construction of 224km of rail line by 2029 and is estimated to cost TRY139.3 billion ($3.4 billion). Growth will also be supported by investment in the oil and gas sector and the 2035 Renewable Energy Roadmap

The analyst’s Construction in Turkiye - Key Trends and Opportunities to 2029 (Q3 2025) report provides detailed market analysis, information, and insights into Turkiye’s 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 (2020-2024) and forecast (2025-2029) 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 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 the Publisher

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), 2020-29
Table 4: Turkiye, Top Commercial Construction Projects by Value
Table 5: Turkiye, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: Turkiye, Top Industrial Construction Projects by Value
Table 7: Turkiye, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Turkiye, Top Infrastructure Construction Projects by Value
Table 9: Turkiye, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Turkiye, Top Energy and Utilities Construction Projects by Value
Table 11: Turkiye, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Turkiye, Top Institutional Construction Projects by Value
Table 13: Turkiye, Residential Construction Output by Project Type (Real % Change), 2020-29
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: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Eastern Europe and Central Asia, Construction Output (Real % Change), 2023-29
Figure 2: Turkiye, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: Turkiye, Risk Summary
Figure 4: Turkiye, Risk Regional Comparison
Figure 5: Turkiye, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: Turkiye, Construction Output Value, by Sector (Real, $ Million), 2020-29
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, Employment in Construction (In Thousands)
Figure 16: Turkiye, Hourly labor cost Index for Construction workers (2021=100)
Figure 17: Turkiye, Construction Projects Momentum Index
Figure 18: Eastern Europe, Construction Projects Momentum Index
Figure 19: Turkiye, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 20: Turkiye, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 21: Turkiye, Construction permits issued for commercial buildings, in thousand m2
Figure 22: Turkiye, Total Foreign Visitors Arrivals, In Thousands
Figure 23: Turkiye, Retail Sales Volume Index, Seasonal and Calendar Adjusted (2021 = 100)
Figure 24: Turkiye, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 25: Turkiye, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 26: Turkiye, Industrial and Warehouse building (thousand m2)
Figure 27: Turkiye, Manufacturing Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 28: Turkiye, Manufacturing - Capacity Utilization Rate (In %)
Figure 29: Turkiye, Industrial and Manufacturing Production Indices, 2021=100, Seasonally and Calendar Adjusted
Figure 30: Turkiye, Total Export (US$ Million)
Figure 31: Turkiye, Sales of Passenger Cars and Light Commercial Vehicles, In Number
Figure 32: Turkiye, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 33: Turkiye, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Turkiye, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 35: Turkiye, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 36: Turkiye, Information and Communication Activities Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 37: Turkiye, Energy production index (2021=100)
Figure 38: Turkiye, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 39: Turkiye, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 40: Turkiye, Value-Add of Public Administration, Education, Human Health and Social Work Activities (TRY Million, 2009 Chain Linked Volume Measures)
Figure 41: Turkiye, Floor Area of Construction Permits Approved for Public Entertainment, Education, Hospital or Institutional Care Buildings (In Thousand m2)
Figure 42: Turkiye, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 43: Turkiye, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 44: Turkiye, Real Estate Activities Value-Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 45: Turkiye, Turkey, Floor area of residential permits, in thousand m2
Figure 46: Turkiye, Number of House Sales
Figure 47: Turkiye, Hedonic Property Price Index, 2023=100
Figure 48: Turkiye, Construction Cost of New Residential Building, Unadjusted (2021=100)
Figure 49: Turkiye, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 50: Turkiye, Headquarters of Key Consultants (% of Total Project Pipeline)

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Scope

This report provides a comprehensive analysis of the construction industry in Turkey. It provides:

Reasons to Buy

Table of Contents

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