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Construction Market in Turkey 2019-2023

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.

Competitive Landscape

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.


PRESS RELEASE

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.

Companies Mentioned

Alarko Holding

ENKA

Ronesans Holding

TAV Construction

Tekfen Holding

  • Executive summary
  • Scope of the report
  • Market landscape
    • Market ecosystem
      • Table Global construction market
      • Table Segments of global construction market
    • Market characteristics
      • Table Market characteristics
    • Market segmentation analysis
      • Table Market segments
  • Market sizing
    • Market definition
      • Table Market definition - Inclusions and exclusions checklist
    • Market sizing 2018
      • Table Market size 2018
    • Market size and forecast 2018-2023
      • Table Country market: Size and forecast 2018-2023 ($ billions)
      • Table Turkey historical GDP 2012-2017 ($ billions)
      • Table Country market: Year-over-year growth 2019-2023 (%)
  • Five forces analysis
    • Table Five forces analysis 2018
    • Table Five forces analysis 2023
    • Bargaining power of buyers*
      • Table Bargaining power of buyers
    • Bargaining power of suppliers
      • Table Bargaining power of suppliers
    • Threat of new entrants
      • Table Threat of new entrants
    • Threat of substitutes
      • Table Threat of substitutes
    • Threat of rivalry
      • Table Threat of rivalry
    • Market condition
      • Table Market condition - Five forces 2018
  • Market segmentation by end-user
    • Table End-user - Market share 2018-2023 (%)
    • Comparison by end-user
      • Table Comparison by end-user
    • Residential - Market size and forecast 2018-2023
      • Table Residential - Market size and forecast 2018-2023 ($ billions)
      • Table Residential - Year-over-year growth 2019-2023 (%)
      • Table Drivers and challenges in residential construction
    • Infrastructure - Market size and forecast 2018-2023
      • Table Infrastructure - Market size and forecast 2018-2023 ($ billions)
      • Table Infrastructure - Year-over-year growth 2019-2023 (%)
      • Table Drivers and challenges in infrastructure construction
    • Commercial - Market size and forecast 2018-2023
      • Table Commercial - Market size and forecast 2018-2023 ($ billions)
      • Table Commercial - Year-over-year growth 2019-2023 (%)
      • Table Drivers and challenges in commercial construction
    • Market opportunity by end-user
      • Table Market opportunity by end-user
  • Customer landscape
    • Table Customer landscape
  • Decision framework
  • Drivers and challenges
    • Market drivers
      • Table New home sales growth rate 2013-2017 (%)
      • Table Growth in inbound tourism (2012-2017)
    • Market challenges
      • Table Turkey's (TRY) in comparison to USD 2009-2017 (% change)
      • Table Impact of drivers and challenges
  • Market trends
    • Increasing focus on building earthquake-resilient buildings
    • Development of green buildings
    • Adoption of dry construction techniques
      • Table Advantages of dry construction
  • Vendor landscape
    • Overview
      • Table Vendor landscape
    • Landscape disruption
      • Table Landscape disruption
    • Competitive scenario
  • Vendor analysis
    • Vendors covered
      • Table Vendors covered
    • Vendor classification
      • Table Vendor classification
    • Market positioning of vendors
      • Table Market positioning of vendors
    • Alarko Holding
      • Table Alarko Holding - Vendor overview
      • Table Alarko Holding - Business segments
      • Table Alarko Holding - Organizational developments
      • Table Alarko Holding - Segment focus
    • ENKA
      • Table ENKA - Vendor overview
      • Table ENKA - Business segments
      • Table ENKA - Organizational developments
      • Table ENKA – Geographic focus
      • Table ENKA - Segment focus
    • Ronesans Holding
      • Table Ronesans Holding - Vendor overview
      • Table Ronesans Holding - Organizational developments
    • TAV Construction
      • Table TAV Construction - Vendor overview
      • Table TAV Construction - Organizational developments
    • Tekfen Holding
      • Table Tekfen Holding - Vendor overview
      • Table Tekfen Holding - Business segments
      • Table Tekfen Holding - Organizational developments
      • Table Tekfen Holding – Geographic focus
      • Table Tekfen Holding - Segment focus
  • Appendix
    • Research methodology
    • List of abbreviations
  • Explore Technavio

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