Turkey Prefabricated Buildings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Turkey Prefabricated Buildings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the period of the forecast, the Polish prefabricated building industry is expected to register a CAGR of more than 4.5%.

• The COVID-19 pandemic caused a lot of uncertainty for vendors and contractors in the construction industry when it started.Several construction companies shut down their projects due to lockdowns and restrictions. However, due to immediate requirements for hospitals and quarantine sectors, the demand for prefabricated buildings increased.
• For instance, in September 2021, Turkey opened a modular hospital for treating COVID-19 patients. The Turkish prefabricated construction sector has achieved great success with two emergency hospitals (field hospitals) with a capacity of 2,000 beds, which were completed in a record time of 45 days in Istanbul. The fact that two giant pandemic hospitals of enormous size were built in a very short time with the prefabricated construction system
• Turkey is becoming more industrialized and urbanized, and its population is growing quickly, so the prefabricated building market is likely to grow over the next few years.Prefabricated construction will also have many chances to grow because more and more people want green buildings and construction methods that are good for the environment.Modular production coupled with modern digital processes offers the opportunity to build a faster and more efficient structure while saving resources at the same time.
• In Turkey, the number of prefabricated buildings is slowly growing because they are said to be less damaged by natural disasters and to last longer. The turnover of the prefabricated building industry in Turkey is also going up because the construction industry as a whole is growing and prices are going up.

Modular, prefabricated buildings provide efficient construction solutions for both temporary and permanent applications. With the rapid increase in the population in Turkey, the need for low-cost housing has become essential. Increasing housing prices and the search for more affordable and nature-friendly dwellings in the great outdoors amid the COVID-19 pandemic have boosted demand for small, prefabricated, mobile tiny houses in Turkey. According to official data released by the Turkish Statistical Institute, around 1.5 million prefabricated tiny houses were sold in 2021, a year-on-year increase of 30 percent.

Sales of prefabricated buildings in Turkey have increased three- to fourfold. This is especially true when an earthquake strikes and destroys thousands of properties. Along with the increasing demand for prefabricated housing, the demand for land in Turkey also continues to grow. Small plots of land for individual use are especially popular today. Those who are afraid of the risk of earthquakes or have already suffered from the disaster now prefer to buy land to install a prefabricated house instead of an apartment in Turkey.

After the earthquake, the demand for prefab buildings went up, so the prices of demountable structures for sale in Turkey went up by 40% in just two weeks. Before the earthquake, prefabricated houses in Izmir province were for sale for between 70,000 and 100,000 Turkish Liras (USD 9,750 and USD 12,750). Now, according to Rdvan Akgün, the chairman of the Zmir Real Estate Club, they are for sale for between 150,000 and 200,000 Turkish Liras (USD $19,000 and USD 25,500).

Prefabricated buildings take about a week to be installed in Turkey and can range from 180 USD per square meter to 280 USD per square meter. Starting prices include plumbing and wiring, bathroom plumbing, fixtures, and painting on the outside and inside of the prefab house, but not a basic package of some special materials.

From January 2015 to September 2022, the construction cost index for homes in Turkey went up on average. As of September 2022, the index had reached 666 points, which was the highest value seen during the time period that was looked at. Also in Turkey, the high demand for land and lack of building materials are driving up the cost of traditional construction. Thus, supply shortages in construction materials and rising costs are fueling the prefabricated building market in Turkey.

The Turkish Statistical Institute (TUIK) announced the costs of data construction in Turkey. Accordingly, the construction cost index increased by 4.41% in May 2021 compared to the previous month and by 39.56% compared to the same month of the previous year. Compared to the previous month, the materials index rose 6.32%, while the labor index fell 0.03%. In addition, compared to the same month of the previous year, the material index in Turkey increased by 49.45%, and the Turkish labor index increased by 19.97%. The rising costs of conventional construction are driving the adoption of prefabricated structures in Turkey.

The market is highly fragmented in nature, with large companies claiming significant market share. Companies are focusing on technological innovations. Some suppliers are providing fully customized, prefabricated wooden structures. High capital requirements and rapid technological advancement are important barriers to entry for new participants. Intensified competition led to the emergence of many innovative and advanced solutions on the market, such as turnkey solutions and lightweight ceramic houses.

Because of this, it's important for businesses to be able to keep going, grow into other areas, and get domestic demand back up. Companies can use effective production technologies to keep product costs low and reduce risks, which helps them make more money. Prefabrik Yapı A.Ş, Karmod Prefabricated Technologies, Module-T, Tepe Prefabrik, and Vekon are the major companies in the Turkish prefabricated building industry.

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