Turkey Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Turkey Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData estimates the construction industry in Turkey to expand by 3.8% in real terms in 2023, owing to investments to rebuild buildings and infrastructure that was damaged in the February 2023 earthquake. In April 2023, President Recep Tayyip Erdogan promised to build a total of 650,000 new houses, 319,000 of which will be delivered in one year. Moreover, in late June 2023, the World Bank approved a loan of TRY23.3 billion ($1 billion) to assist the Turkish government in the reconstruction of rural housing and essential public services in the earthquake-affected regions. Although expanding in 2023, the underlying state of the Turkish construction industry is weak. The industry shrank for the fifth consecutive year in real terms in 2022, when it plummeted by 8.4%. Contributing to the underlying weakness if the challenging economic backdrop caused by elevated inflation and interest rates, rising construction costs, depreciation of the local currency, and a high current account deficit.

Partly driven by reconstruction works, the industry is expected to post average annual growth rate of 4.2% from 2024 to 2027, supported by investments in transport, renewable energy, and housing infrastructure projects. In November 2022, the Turkish government raised its greenhouse gas emission reduction target for 2030. The government now aims to bring its greenhouse gas emissions 41% below business-as-usual levels by 2030 - up from its previous target of 21%. To support the renewable energy sector, in April 2023, the government granted 12 pre-licenses with a capacity of 744MW for the installation of solar and wind-based electricity storage facilities. These licenses are expected to result in a total investment of TRY35 billion ($1.5 billion).

This 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 Turkey. It provides -

• Historical (2018-2022) and forecast (2023-2027) 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.