Construction Market Analysis Turkey - Size and Forecast 2024-2028

Turkey Construction Market Size 2024-2028

The turkey construction market size is forecast to increase by USD 68.3 billion, at a CAGR of 5.96% between 2023 and 2028.

• The market is experiencing significant growth, driven by the increasing demand for real estate properties. This trend is fueled by both domestic and foreign investors seeking opportunities in Turkey's thriving economy. Another key driver is the government's focus on building earthquake-resilient structures, which is leading to increased investment in advanced construction technologies and materials. However, the market faces challenges as well. The rising cost of construction materials, particularly steel and cement, poses a significant obstacle for construction firms, potentially increasing project costs and impacting profitability.
• To capitalize on market opportunities and navigate these challenges effectively, companies must stay informed of the latest construction trends and technologies, while also exploring cost-effective solutions for sourcing construction materials. Additionally, collaborating with local partners and suppliers can help mitigate risks and ensure regulatory compliance, ultimately positioning firms for long-term success in Turkey's dynamic construction market.

What will be the size of the Turkey Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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• The construction industry in Turkey is experiencing dynamic changes, driven by various factors. Research indicates that maintenance and supervision are critical challenges, necessitating innovative solutions. Construction technology adoption, including data analytics and testing, is transforming project management and inspection processes. Building retrofit and adaptive reuse are gaining traction, contributing to the industry's future growth. Sustainable construction practices, green building design, and infrastructure maintenance are key trends, driven by policy and regulatory requirements. Specialty contracting and consulting services are essential for addressing complex projects.
• Construction economic outlook remains positive, with opportunities in general contracting, repair, and demolition. The industry's future hinges on workforce development, innovation, and compliance with regulations. Construction services, from project management to inspection, are evolving to meet these challenges and opportunities.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Sector
  • Private
  • Public
• End-user
  • Residential
  • Infrastructure
  • Commercial
• Geography
  • Middle East and Africa
    • Turkey

By Sector Insights

The private segment is estimated to witness significant growth during the forecast period.

The Turkish construction market witnesses dynamic activity and trends, driven largely by the private sector. This segment plays a pivotal role in shaping the industry's landscape, offering various services and projects throughout the country. Employment generation and economic growth are significant outcomes of this sector's growth. High-rise buildings, a notable contribution, are increasingly popular in major cities like Istanbul, Ankara, and Izmir. Sustainable and energy-efficient practices, such as LEED certification and green building, are gaining traction in residential and commercial construction. Construction automation, project management, and digital transformation are key trends, with the adoption of construction management software, building information modeling, and robotics in construction.

Real estate development, infrastructure projects, and industrial construction are other thriving sectors, with safety regulations, building codes, and quality control ensuring the highest standards. Construction audits, waste management, and recycling initiatives contribute to cost savings and sustainability. Construction financing, permits, and contracts are streamlined through innovative methods, enabling efficient and effective project execution. The market is characterized by continuous innovation, with precast concrete, structural steel, and 3D modeling being widely used. Skilled labor and workforce management are essential components of the industry, with quality assurance and safety regulations ensuring the delivery of top-notch projects. Infrastructure development, including bridge construction and highway construction, is ongoing, driving the demand for heavy equipment and construction machinery.

Environmental regulations and sustainability are increasingly important, with the use of sustainable construction materials and a focus on energy efficiency. Construction risk management and safety standards are also crucial, with the industry adhering to strict regulations and best practices. Overall, the market remains a vibrant and evolving sector, with a strong focus on innovation, efficiency, and quality.

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The Private segment was valued at USD 125.60 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the Turkey Construction Market drivers leading to the rise in adoption of the Industry?

• The surging demand for real estate properties in Turkey serves as the primary catalyst for market growth.

• The market is experiencing significant growth, particularly in the residential sector. Driven by innovative and modern residential apartment designs, the sector is attracting both domestic and foreign buyers. This trend is fueled by promotional campaigns by banks and the easing of home loan interest rates. Additionally, the increasing middle-income group and improved access to mortgage finance are encouraging home purchases. Foreign investors have also taken notice, with the government's relaxation of property buying rules leading to increased sales of residential apartments. Engineering design and construction technology are playing crucial roles in this growth, with the use of 3D modeling and construction machinery, such as backhoe loaders, streamlining projects and reducing costs.
• Sustainable construction materials are also gaining popularity, as the industry focuses on risk management and infrastructure projects. Construction industry regulations ensure a harmonious and strike-free environment for skilled labor and the adoption of construction technology. The market is poised for continued growth, offering opportunities for businesses in engineering design, construction materials, and heavy equipment.

What are the Turkey Construction Market trends shaping the Industry?

• The construction industry is increasingly prioritizing the development of earthquake-resilient buildings, reflecting a notable market trend. Adhering to this trend, professionals in the field focus on designing and constructing structures that can withstand seismic activity.

• Turkey's construction market is experiencing significant growth due to the government's focus on urban development and infrastructure improvement. The country's unique geographical location necessitates strict earthquake safety measures in construction. As a result, there is a growing demand for LEED certification, green building, and earthquake-resistant building designs. Construction audits, project management, and automation are essential for ensuring cost-effective and efficient construction processes. The Turkish real estate development sector is witnessing a surge in residential construction, with a particular emphasis on earthquake-safe homes. The government's Urban Renewal Project, which involves demolishing and rebuilding houses in seismically hazardous areas, is a significant driver of this trend.
• Building materials, roofing materials, and construction supplies are in high demand to meet the increasing construction needs. Construction recycling is also gaining popularity as a sustainable solution for reducing waste and minimizing the environmental impact of construction activities. The use of advanced technology in construction, such as project management software and construction drawing tools, is streamlining the construction process and improving overall productivity. Construction permits and building design regulations are strictly enforced to ensure safety and adherence to environmental standards. In conclusion, the Turkish construction market is undergoing a transformation, driven by the government's urban development initiatives and the need for earthquake-safe homes.
• The market is witnessing significant growth in residential construction, green building, and the use of advanced technology. The focus on sustainability and safety is expected to continue, making Turkey an attractive destination for US businesses involved in construction, real estate development, and building materials supply.

How does Turkey Construction Market faces challenges face during its growth?

• The escalating costs of construction materials pose a significant challenge to the industry's growth trajectory.

• The market is experiencing challenges due to rising material costs and a labor shortage, which could potentially impact its future growth. Major raw materials for construction, such as cement, iron, steel, and aluminum, are heavily imported, and their prices have escalated due to inflation and the falling Lira value. Cement suppliers, including Heidelberg and Lafarge, hold significant market power due to the high concentration of construction companies. Innovation is a key driver in the Turkish construction industry, with a focus on construction safety regulations, architectural design, and workforce management. Commercial construction projects, such as offices, hotels, and malls, are common, along with bridge construction and infrastructure development.
• Sustainability is also a priority, with an emphasis on construction financing, precast concrete, structural steel, and waste management. Quality assurance and construction planning are essential for successful projects. Construction safety is a top concern, with regulations in place to ensure worker safety and site security. Bridge construction, for instance, requires stringent safety measures due to the project's size and complexity. Innovations in construction technology, such as drones for site inspections and 3D printing for architectural design, are being explored to improve efficiency and reduce costs. In conclusion, the Turkish construction market faces challenges related to material costs and labor shortages but remains focused on innovation, safety, and sustainability.
• Cement suppliers hold significant market power, but the industry is characterized by a high level of competition. Despite the challenges, the market offers opportunities for growth and collaboration.

Exclusive Turkey Construction Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ALARKO HOLDING A.S.
• Aydiner Construction Co. Inc.
• Beytturk
• Dere Construction
• ENKA Insaat ve Sanayi A.S.
• Feka
• Limak Holding
• Nurol Construction and Trading Co. Inc.
• Renaissance Construction
• Ronesans Holding
• SK ecoplant CO. LTD.
• Taisei Corp.
• TAV Tepe Akfen Investment Construction and Operation Co.
• Tekfen Construction and Installation Co. Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Construction Market In Turkey

• In March 2023, Turkey's Construction and Housing Development Ministry announced the launch of a new housing project worth over USD3 billion in Istanbul. The project, named "Istanbul Home," aims to build 100,000 units over the next five years, addressing the growing housing demand in the city (Anadolu Agency, 2023).
• In July 2024, Turkish construction giant, Yapi Merkezi, formed a strategic partnership with the German engineering firm, Siemens, to integrate Building Information Modeling (BIM) technology into their projects. This collaboration is expected to enhance project efficiency and reduce costs (Yapi Merkezi Press Release, 2024).
• In September 2024, the Turkish government approved the construction of the USD10 billion Istanbul Canal project. This waterway, which will rival the Suez Canal, is expected to significantly boost Turkey's economy and position it as a major international trade hub (Reuters, 2024).
• In February 2025, Enka Construction, a leading Turkish construction company, completed the acquisition of a major stake in the Polish construction firm, Budimex. This strategic move marks Enka's entry into the European market and expands its geographic reach (Bloomberg, 2025).

Research Analyst Overview

The market continues to evolve, driven by dynamic market dynamics and various sector applications. LEED certification, a key aspect of green building, gains increasing importance as sustainability becomes a priority. Residential construction, real estate development, and infrastructure development sectors embrace this trend, integrating energy efficiency and sustainable building materials into their projects. Construction audits ensure project management efficiency and cost effectiveness, while construction recycling reduces waste and promotes sustainability. Construction automation streamlines processes, from project planning to quality control, utilizing advanced technologies like robotics and construction management software. Roofing materials, building materials, and construction supplies undergo continuous innovation, with a focus on durability, cost, and environmental impact.

Construction safety regulations and workforce management are essential components of the industry, ensuring a safe and productive work environment. Infrastructure development projects, including bridge construction and highway construction, require meticulous planning, adherence to building codes, and efficient project management. Construction permits, construction contracts, and construction financing are crucial elements in bringing these projects to fruition. Construction innovation, such as precast concrete and digital transformation, revolutionizes the industry, enabling more efficient and sustainable construction practices. Construction industry regulations and safety standards continue to evolve, ensuring the highest quality and safety in all projects. Construction cost, construction labor, and waste management are ongoing concerns, with a focus on optimization and cost reduction through innovation and technology.

The market remains a vibrant and dynamic sector, with continuous unfolding of market activities and evolving patterns.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Construction Market in Turkey insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Turkey
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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