Market Research Report
Construction in Turkey - Key Trends and Opportunities to 2025 (Q4 2021)
|Construction in Turkey - Key Trends and Opportunities to 2025 (Q4 2021)|
Published: December 30, 2021
Content info: 53 Pages
Delivery time: 1-2 business days
Although expanding in 2021, the Turkish construction industry has been relatively sluggish; it is estimated to have grown by 2.7%, following a decline of 5.5% in 2020. The estimate for growth in 2021 has been revised downwards from a previous projection of 5.6%, owing to major challenges faced by the industry in the second half of the year, as a result of increased prices for construction materials amid the country's currency crisis, and the suspension of development projects. According to the Turkish Statistical Institute (TurkStat), the construction industry's value add declined by 6.7% year on year (YoY) in Q3 2021, preceded by year-on-year (Y-o-Y) expansions of 3.3% in Q2 and 3.1% in Q1 2021. In addition, the country's gross fixed capital investments declined by 2.4% in the third quarter of 2021.
Assuming greater macroeconomic stability in 2022, the industry is expected to post another relatively low growth rate of 2.8%, before expanding by an annual average of 5.4% over the remainder of the forecast period (2023-2025), driven by investment in renewable energy, education, and transport infrastructure. The government plans to build 2,000km of high-speed rail lines from Kars in northeast Turkey to Edirne in the westernmost part of the country by 2023; this project is being partially financed by China. The government also aims to increase the share of renewable energy in electricity generation to 38.8% by 2023, compared to 32.5% in 2018. In addition, the government's plan to construct 400,000 dwellings by 2023 will also contribute to the industry's development. There are downside risks, however, as construction costs have soared in recent months, with the latest index on construction costs showing a Y-o-Y increase of 41.9% in October 2021, with materials costs rising by 50.9% and labor costs rising by 22.6%. This reflects the sharp depreciation in the Lira alongside an increase in demand and wider global supply chain disruptions.
GlobalData's Construction in Turkey - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information, and insights into the Turkish construction industry, including -
This report provides a comprehensive analysis of the construction industry in Turkey. It provides -