Turkey Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Turkey Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

The Turkish construction industry is expected to decline by 8.1% in 2022, following a weak first half of the year, in which output contracted by 9.8% compared to the first half of 2021. The decline has been driven by the impact of the ongoing currency crisis and soaring inflation on the Turkish economy, which is highly sensitive to changes in the value of the lira due to Turkey’s large current account deficit. The lira’s value has fallen by 37.6% against the US dollar in the first seven months of this year. Since March 2022, the impact of the war in Ukraine on energy and commodity prices has put further pressure on import costs. According to the Turkish Statistical Institute (Turkstat), total construction costs rose by 106.4% year on year (YoY) in the second quarter of 2022, driven primarily by rising materials costs, which increased by 131.6%. This will weigh heavily on new investment, as well as on the progress of ongoing construction projects over the remaining part of 2022 and into 2023. According to Turkstat, the total floor area of building permits issued decreased by 14.8% YoY in the first half of 2022, reflecting weaker confidence in the industry due to headwinds.

The industry’s output in 2022 will be partially buoyed by public investments in transport, mining, electricity, and affordable housing projects, as well as strong demand for housing due to a government-backed scheme to keep mortgage rates low for first-time buyers. However, this is not expected to fully offset the impact of rising construction costs on housing demand, and the residential construction sector is expected to remain weak compared to historical levels in 2022 and 2023. Assuming greater macroeconomic stability in 2024, the industry is expected to register an annual average growth rate of 4.9% between 2024 and 2026, supported by investment in transportation and energy projects, along with the resumption of stalled projects. In May 2022, President Recep Tayyip Erdoğan allocated TYR20 billion ($1.2 billion) to the construction industry to restart projects that have been put on hold. Furthermore, in April 2022, the President unveiled the Transportation and Logistics Master Plan - Transportation 2053 Vision; launching an investment plan of TRY2 trillion ($198 billion) in transport and rail freight, with an aim to be a logistics superpower by 2053

The report provides detailed market analysis, information and insights into Turkey’s construction industry, including -

  • Turkey’s 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 Turkey’s 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 (2017-2021) and forecast (2022-2026) 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 GlobalData'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 GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 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
7.4 GlobalData Construction
Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Turkey, Key Economic Indicators
Table 3: Turkey, Commercial Construction Output by Project Type (Real % Change), 2017-26
Table 4: Turkey, Top Commercial Construction Projects by Value
Table 5: Turkey, Industrial Construction Output by Project Type (Real % Change), 2017-26
Table 6: Turkey, Top Industrial Construction Projects by Value
Table 7: Turkey, Infrastructure Construction Output by Project Type (Real % Change), 2017-26
Table 8: Turkey, Top Infrastructure Construction Projects by Value
Table 9: Turkey, Energy and Utilities Construction Output by Project Type (Real % Change), 2017-26
Table 10: Turkey, Top Energy and Utilities Construction Projects by Value
Table 11: Turkey, Institutional Construction Output by Project Type (Real % Change), 2017-26
Table 12: Turkey, Top Institutional Construction Projects by Value
Table 13: Turkey, Residential Construction Output by Project Type (Real % Change), 2017-26
Table 14: Turkey, Top Residential Construction Projects by Value
Table 15: Turkey, Key Contractors
Table 16: Turkey, Key Consultants
Table 17: Turkey, Construction Output Value (Real, $ Million)
Table 18: Turkey, Construction Output Value (Nominal, TRY Billion)
Table 19: GlobalData 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), 2020-26
Figure 2: Turkey, Construction Output by Sector (Real % Change), 2020-22 and 2023-26
Figure 3: Turkey, COVID-19 Confirmed Cases
Figure 4: Turkey, Risk Summary
Figure 5: Turkey, Risk Regional Comparison
Figure 6: Turkey, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2017-26
Figure 7: Turkey, Construction Output Value, by Sector (Real, $ Million), 2017-26
Figure 8: Turkey, Construction Value Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 9: Turkey, Gross Fixed Capital Formation (TRY Million, 2009 Chain Linked Volume Measures)
Figure 10: Turkey, Construction Cost Index, 2015=100
Figure 11: Turkey, Building Permits, In Thousand m2
Figure 12: Turkey, Building Activity Index and Construction Confidence Index, Seasonally Adjusted (2015=100)
Figure 13: Turkey, Construction Turnover Index, Seasonal and Calendar Adjusted, Nominal % Change YoY
Figure 14: Turkey, Number of People Employed in the Construction Industry, In Thousands
Figure 15: Turkey, Construction Projects Momentum Index
Figure 16: Region, Construction Projects Momentum Index
Figure 17: Turkey, Commercial Construction Output by Project Type (Real, $ Million), 2017-26
Figure 18: Turkey, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 19: Turkey, Floor Area of Permits Approved for the Construction of Commercial Buildings, In Thousand m2
Figure 20: Turkey, Services Value Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 21: Turkey, Total Foreign Visitors Arrivals, In Thousands
Figure 22: Turkey, Retail Sales Volume Index (2015=100)
Figure 23: Turkey, Industrial Construction Output by Project Type (Real, $ Million), 2017-26
Figure 24: Turkey, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 25: Turkey, Passenger Cars and Light Commercial Vehicle Sales
Figure 26: Turkey, Manufacturing Value Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 27: Turkey, Capacity Utilization Rate in The Manufacturing Industry
Figure 28: Turkey, Industrial and Manufacturing Production Indices, Seasonally and Calendar Adjusted (2015=100)
Figure 29: Turkey, Total Export ($ Million)
Figure 30: Turkey, Infrastructure Construction Output by Project Type (Real, $ Million), 2017-26
Figure 31: Turkey, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 32: Turkey, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2017-26
Figure 33: Turkey, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Turkey, Information and Communication Value Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 35: Turkey, Turkey, Production Index of Electricity, Gas, Steam, and Air Conditioning Supply, Seasonally and Calendar Adjusted (2015=100)
Figure 36: Turkey, Institutional Construction Output by Project Type (Real, $ Million), 2017-26
Figure 37: Turkey, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 38: Turkey, Value Add of Public Administration, Education, Human Health, and Social Work Activities, In TRY Million, 2009 Chain Linked Volume Measures
Figure 39: Turkey, Floor Area of Construction Permits Approved for Public Entertainment, Education, Hospital or Institutional Care Buildings, In Thousand m2
Figure 40: Turkey, Residential Construction Output by Project Type (Real, $ Million), 2017-26
Figure 41: Turkey, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 42: Turkey, Real Estate Value Add (TRY Million, 2009 Chain Linked Volume Measures)
Figure 43: Turkey, Floor Area of Residential Permits, In Thousand m2
Figure 44: Turkey, House Sales, In Number
Figure 45: Turkey, Residential Property Price Index (RPPI) (2017=100)

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