Construction Market in Turkey 2019-2023
About this market
Majority of Turkey’s land rests on first and second-degree seismic belts as it sits at the confluence of the Arabian, African, and Eurasian plates. Improper city planning and poor infrastructure due to rapid urbanization have created a demand for earthquake-resilient homes in Turkey. The Government of turkey have launched the Urban renewal Project which focuses on the development of earthquake-safe homes. As part of the project, the government plans to demolish 7 million houses which are prone to earthquake damage in several high earthquake risk cities such as Istanbul, Bursa, Izmir, and Burdur. Financial aid and one-off payment will be provided by the Turkish government to the owners and inhabitants of the demolished buildings. The development of earthquake resilient buildings is in the planning stage and the increasing awareness and government support will provide ample growth opportunities to the construction companies in Turkey. Thus, the increasing focus on earthquake-resilient buildings will be one of the key factors driving the construction market in Turkey. Technavio’s analysts have predicted that the construction market in Turkey will register a CAGR of almost 5% by 2023.Market Overview
Augmented demand for Turkey’s real estate properties
Several banks in Turkey are undertaking promotional campaigns and lowering their home loan interest rates. This have encouraged residential home buyers to invest in innovative and modern residential apartments. The rules for foreign buyers investing in residential apartments have also been relaxed by the Turkish government. These factors have increased the construction activities in the country and led to market growth during the forecast period
Rising cost of construction materials
The prices of raw materials such as cement, steel, iron, and aluminum has been increasing due to rising inflation and falling Lira value. The cement market in Turkey is highly concentrated which gives the suppliers a higher bargaining power. Moreover, Turkey is facing a shortage of raw materials due to the implementation of several large-scale public infrastructure projects. This have resulted in an increase of raw material prices, which, in turn, is hampering the growth prospects of the construction market in Turkey.
For the detailed list of factors that will drive and challenge the growth of the construction market in Turkey during 2019-2023, view our report.
The market appears to be fragmented and with the presence of several companies including Alarko Holding, and ENKA the competitive environment is quite intense. Factors such as the increasing demand for real estate properties in Turkey, will provide considerable growth opportunities to the construction companies in Turkey. Alarko Holding, ENKA, Ronesans Holding, TAV Construction, and Tekfen Holding are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Construction Market in Turkey 2019-2023
Technavio recognizes the following companies as the key players in the construction market in Turkey: Alarko Holding, ENKA, Ronesans Holding, TAV Construction, and Tekfen Holding.
Commenting on the report, an analyst from Technavio’s team said: “Turkey is one of the high earthquake prone areas in the world. The Turkish government intends to demolish 7 million houses in its high earthquake risk areas and develop new earthquake resilient homes. This initiative is expected to boost the construction market in Turkey.”
According to the report, one of the major drivers for this market is the growing demand for real estate properties in Turkey. The lowering of home loan interest rates by banks and relaxation of rules by the Turkish government is encouraging residential and foreign buyers to invest in residential apartments.
Further, the report states that one of the major factors hindering the growth of this market is the rising cost of raw materials. Increasing inflation and falling Lira value are some of the factors contributing to the increase in raw material prices.