Construction in Turkey – Key Trends and Opportunities to 2024

Prior to the Coronavirus (COVID-19) outbreak, Turkey’s construction industry was struggling, with output declining by 8.6% in real terms in 2019. The country’s economic woes have severely impacted construction activity; the depreciation of the lira and high interest rates have pushed up construction costs and the cost of borrowing. With the emergence of the pandemic and measures taken by the government, the construction industry is now set to contract further in 2020.

The Treasury and Finance Ministry reported that Turkey registered a budget deficit of TRY139.1 billion (US$23.2 billion) between January-July 2020. In July 2020, the budget balance saw a deficit of TRY29.7 billion (US$4 billion), compared to a surplus of TRY9.9 billion (US$1.7 billion) in July 2019.

As Turkey’s economic outlook worsens and the government’s fiscal position weakens due to the virus outbreak, the construction sector is also set to be adversely affected. Infrastructure construction will be particularly affected. Prior to the crisis the government had been financing major infrastructure projects across the country, but it is likely that it may not have the ability to fund large scale infrastructure projects in the medium term.

Reflecting the disruptions caused by the pandemic, coupled with the weak outlook for economic growth, GlobalData forecasts the construction industry to shrink by 2.5% in 2020. The industry will recover, however, posting an average annual growth of 4.5% between 2021-2024

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 (2015-2019) and forecast (2020-2024) 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.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

4 Construction Outlook

4.1 All Construction

4.2 Commercial Construction

4.3 Industrial Construction

4.4 Infrastructure Construction

4.5 Energy and Utilities Construction

4.6 Institutional Construction

4.7 Residential Construction

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 GlobalData Construction

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Turkey, Key Economic Indicators

Table 3: Turkey, Commercial Construction Output by Project Type (Real % Change), 2015-2024

Table 4: Turkey, Top Commercial Construction Projects by Value

Table 5: Turkey, Industrial Construction Output by Project Type (Real % Change), 2015-2024

Table 6: Turkey, Top Industrial Construction Projects by Value

Table 7: Turkey, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024

Table 8: Turkey, Top Infrastructure Construction Projects by Value

Table 9: Turkey, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024

Table 10: Turkey, Top Energy and Utilities Construction Projects by Value

Table 11: Turkey, Institutional Construction Output by Project Type (Real % Change), 2015-2024

Table 12: Turkey, Top Institutional Construction Projects by Value

Table 13: Turkey, Residential Construction Output by Project Type (Real % Change), 2015-2024

Table 14: Turkey, Top Residential Construction Projects by Value

Table 15: Turkey, Key Contractors

Table 16: Turkey, Key Consultants

Table 17: Turkey, Construction Output Value (Real, US$ Million)

Table 18: Turkey, Construction Output Value (Nominal, TRY Million)

Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: Eastern Europe, Construction Output (Real % Change), 2020

Figure 2: Turkey, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: Turkey, COVID-19 Confirmed Cases

Figure 4: Turkey, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024

Figure 5: Turkey, Construction Output Value, by Sector (Real, US$ Million), 2015-2024

Figure 6: Turkey, Construction Value-Add (TRY Million, 2009 Chain Linked Volume Measures)

Figure 7: Turkey, Construction Turnover Index, Seasonal and Calendar Adjusted (2015=100)

Figure 8: Turkey, Building Activity Index and Construction Confidence Index, Seasonally Adjusted

Figure 9: Turkey, Seasonally Adjusted Unemployment

Figure 10: Turkey, Construction Projects Momentum Index

Figure 11: Turkey, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 12: Turkey, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 13: Turkey, Services Value-Add (TRY Million, 2009 Chain Linked Volume Measures)

Figure 14: Turkey, Total Foreign Visitors Arrivals

Figure 15: Turkey, Retail Sales Volume Index (2015 = 100)

Figure 16: Turkey, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 17: Turkey, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 18: Turkey, Production Index, Seasonally and Calendar Adjusted (2015=100)

Figure 19: Turkey, Manufacturing Value-Add (TRY Million, 2009 Chain Linked Volume Measures)

Figure 20: Turkey, Total Export (US$ Million)

Figure 21: Turkey, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 22: Turkey, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 23: Turkey, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 24: Turkey, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 25: Turkey, Energy Production Index (2015=100)

Figure 26: Turkey, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 27: Turkey, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 28: Turkey, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 29: Turkey, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: Turkey, Real Estate Activities Value-Add (TRY Million, 2009 Chain Linked Volume Measures)

Figure 31: Turkey, Building Permits Issued (Total Number)

Figure 32: Turkey, House Sales (Total Number)

Figure 33: Turkey, Residential Property Price Index (RPPI) (2017 = 100)

Figure 34: Turkey, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 35: Turkey, Headquarters of Key Consultants (% of Total Project Pipeline)

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