Enjoy complimentary customisation on priority with our Enterprise License!
The Turkey-construction market size is estimated to grow at a CAGR of 5.43% between 2022 and 2027. The market size is forecast to increase by USD 58.52 billion. The growth of the market depends on several factors, such as the rising demand for real estate properties in Turkey, the rising investment in public infrastructure projects, and the growing foreign tourism in Turkey.
This report extensively covers market segmentation by sector (private and public), end-user (residential, infrastructure, and commercial), and geography (Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Turkey Construction Market Forecast 2023-2027
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
One of the main tourist destinations around the world is Turkey with approximately 25-30 million foreign tourists visiting the country each year. There is an increasing preference for this destination by middle-income tourists from all over the world as it is a low-budget travel destination.
Moreover, there is an increase in number of tourists in the country in 2021 after a decline in 2020, which is putting pressure on the existing tourism infrastructure. As a result, several authorities are encouraging investments in new constructions such as hotels, resorts, golf clubs, and other infrastructure. Hence, such factors are positively impacting the market. therefore, it is expected to drive the Turkey construction market growth during the forecast period.
There has been a growing popularity for the adoption of green building design and construction practices in Turkey for the past two years since the construction of the nation's first Leadership in Energy and Environmental Design (LEED)-certified building started in the suburbs of Ankara. As a result, there is a rise in the number of green buildings with approximately 250-300 buildings gaining LEED certification.
Moreover, some of the main reasons for the increasing adoption of green building practices by building contractors and buyers across Turkey include improving building contractors and buyers across Turkey as well as higher energy efficiency, resulting in lower energy consumption and substantial savings in energy costs. Hence, such factors are positively impacting the Turkey - construction market. Therefore, it is expected to drive Turkey construction market growth during the forecast period.
The construction industry in Turkey is highly dependent on material imports. However, there are significant challenges faced by the country due to the increasing cost of materials and a shortage of manual labor, which is negatively impacting the market. Some of the major raw materials used for construction include cement, iron, steel, and aluminum.
Moreover, the prices of these raw materials are significantly influenced by the increasing inflation and falling Lira value. Furthermore, the price volatility of the raw materials has a direct impact on the profit margins of the contractors. In addition, there was a shortage of construction raw materials, including iron and cement due to the implementation of several large-scale public infrastructure projects in Turkey. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the Turkey construction market during the forecast period.
The private segment is estimated to witness significant growth during the forecast period. The strong presence of numerous companies operating in the construction sector, and the wide variety of services and projects delivered across the country are significantly contributing to the growth of this segment. In addition, the increase in participation of private sector companies in construction industries has generated employment opportunities but has also contributed to the overall economic growth of Turkey.
Get a Customised Report as per your requirements for FREE!
The private segment was the largest segment and was valued at USD 119.68 billion in 2017. The development of high-rise buildings, particularly in major cities such as Istanbul, Ankara, and Izmir. is one of the prominent examples of the private sector's contribution to the construction market in Turkey. There is an increase in investment by private-sector companies in constructing skyscrapers, residential towers, and commercial buildings to cater to the increasing demand for housing and commercial spaces. As a result of these construction projects, they improve the skyline of the cities but also offer job opportunities for architects, engineers, construction workers, and other industry professionals. Hence, such factors are fuelling the growth of this segment which in turn will drive Turkey construction market growth during the forecast period.
Based on the end-user, the segment is classified into residential, infrastructure, and commercial. One of the main factors that is significantly contributing to the growth of the residential segment in the construction market in Turkey is the the real estate sector, including residential housing and investment in real estate done by foreign investors. In addition, there are several promotional campaigns by banks and low interest rates on loans which is also positively impacting the growth of this segment. Furthermore, the robust tourism industry is attracting many tourists from European countries, such as the UK and Germany. As a result of this increasing number of tourists, there have been substantial investments in the country's real estate. Hence, such factors are fuelling the growth of this segment which in turn will drive the Turkey's construction market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alarko Holding AS: The company offers construction services for projects such as Fethiye Hillside Beach Club Holiday Resort and Istanbul Karakoy Business Center.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aydiner Construction Co. Inc., Beytturk, Dere Construction, ENKA insaat ve Sanayi AS, 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., and Tekfen Construction and Installation Co. Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The Turkey construction market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Turkey Construction Market Scope |
|
Report Coverage |
Details |
Page number |
123 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.43% |
Market growth 2023-2027 |
USD 58.52 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.33 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alarko Holding AS, Aydiner Construction Co. Inc., Beytturk, Dere Construction, ENKA insaat ve Sanayi AS, 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., and Tekfen Construction and Installation Co. Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.