Turkey Construction Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 53.31 Billion |
| Market Size (2029) | USD 68.43 Billion |
| CAGR (2024 - 2029) | 5.12 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Turkey Construction Market Analysis
The Turkey Construction Market size is estimated at USD 53.31 billion in 2024, and is expected to reach USD 68.43 billion by 2029, growing at a CAGR of 5.12% during the forecast period (2024-2029).
- Due to the COVID-19 pandemic, the construction industry has taken significant hits in Turkey, with construction site closures, project cancellations, supply chain disruptions, and cash stagnation. Because the construction sector is interconnected with over 200 subsectors, any disruption in one of them is expected to cause a ripple effect in the construction sector.
- Construction is an especially important part of the Turkish economy, as it is in many other developing countries. As a result, disruptions in the aforementioned sector have had a greater negative overall impact than they would have in a less dependent, more developed economy.
- By 2023, the Turkish government plans to construct 2,000 kilometers of high-speed rail lines from Kars in northeast Turkey to Edirne in western Turkey, with China funding a portion of the project.
- The government also wants to increase renewable energy's share of electricity generation to 38.8% by 2023, up from 32.5% in 2018. The residential sector is expected to grow significantly over the forecast period because of the government's new urban development program and the country's interest rates being lowered.
- Turkey’s nationwide house prices rose by a whopping 189.9% in November 2022 from a year earlier, to an average of TRY 16,984 (USD 904) per square meter (sq. m.), according to the Central Bank of the Republic of Turkey (CBRT), following y-o-y rises of 64% in 2021, 32.6% in 2020, and 2.9% in 2019.
Turkey Construction Market Trends
Demand for Upgrading & Ongoing Infrastructure Projects to Boost the Construction Sector
According to the Turkish Statistical Institute (TurkStat), the average construction cost index rose by 103.3% in 2022. The industry is however expected to rebound at an average annual growth rate of 5% from 2024 to 2027, supported by investments in transport and renewable energy infrastructure projects.
The government aims to reduce greenhouse gas emissions by 21%, compared to 8.1% in 2021 levels, by 2030 under the Intended Nationally Determined Contribution (INDC). Thus, to support this target, it is focusing on increasing the capacity of renewable energy across the country.
The military sites located in the affluent western part of the country will be moved to the east, while many of Istanbul’s military sites (over 50,000 acres) are likely to be redeveloped.
In January 2023, the Energy and Natural Resources Ministry unveiled the Turkish National Energy Plan and the Turkish Hydrogen Technologies Strategy and Roadmap, which were prepared within the framework of the 2053 net zero emission target. The ministry also plans to increase the share of renewable energy sources in energy consumption, from 16.7% in 2020 to 23.7% in 2035.
Antalya International Airport is undergoing an expansion to upgrade the infrastructure and expand passenger handling capacity. The JV paid EUR 1.81bn (USD 2bn) to DHMI as an upfront payment for the concession in March 2022. It is undertaking the expansion project with an estimated investment of EUR 765m (USD 840.2m), of which EUR 600m (USD 659m) is being invested in the first phase.
Construction on the first phase of the expansion commenced in January 2022 and is expected to be completed in January 2025. It will double the airport’s annual passenger handling capacity from 40 million to 80 million.
Residential Construction Activities Driven by Population Growth to Boost the Construction Sector
The construction sector in Turkey is expected to grow during the forecast period, driven by population growth, which is expected to drive residential construction. Türkey is the 19th largest economy in the world, with a GDP of roughly USD 906 billion. It is a member of the OECD and the G20 and an increasingly important donor of Official Development Assistance.
In an extension of the strong COVID-19 pandemic recovery, the economy grew at 5.6 percent in 2022. However, the economy has been losing momentum amidst a deteriorating external environment and heterodox monetary policies.
Turkey’s residential mortgage loans continue to rise. In November 2022, outstanding housing loans rose by 22.1% to TRY356.2 billion (USD 18.96 billion), following y-o-y growth of 7.5% in 2021 and 39.7% in 2020, based on figures from the (CBRT).
The residential and foreign buyers investing in innovative and modern residential apartments in Turkey, ongoing promotional campaigns by banks, and easing of home loan interest rates are some of the factors contributing to the increasing sales of residential flats in Turkey.
1,159,853 residential properties were sold in Turkey between January and October 2022, This is a 6.7% increase compare to the same period last year.
Housing sales to foreign buyers increased by 12% to 5,893 units during the same period. Istanbul, Turkey's most populous city, accounted for a major share of foreign buyer sales with 2,464 units.
Turkey Construction Industry Overview
The Turkish market is highly competitive, with several players competing for the major share. The market is moderately concentrated. The key market players include Renaissance, Alarko, Polimeks, TAV, etc. Renaissance was ranked 28 in a listing of the world’s 250 largest Construction companies by ENR magazine.
Turkey Construction Market Leaders
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Renaissance Construction
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Polimeks Construction
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Alarko Contracting Group
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Limak Insaat
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TAV Construction
*Disclaimer: Major Players sorted in no particular order
Turkey Construction Market News
- March 2023: Alarko Holding has announced the acquisition of 30,000 square meters of indoor geothermal greenhouse from Ser Farm Greenhouse Food Agriculture and Industry Joint Stock Company in the province of Afyonkarahisar in Türkiye. The price of acquisition was TL 60.17 million (approx. USD 3.16 million).
- December 2022:Groupe ADP member TAV Airports has secured a concession extension to operate Ankara Esenboga Airport in Turkey for another 25 years. This followed an auction held by the Turkish State Airports Authority (DHMI), where TAV emerged as the winner with its bid of EUR 475m (USD 503m). TAV’s existing contract to operate Ankara Esenboğa Airport is valid until May 2025. The new contract begins from 24 May 2025 to 23 May 2050, with TAV planning to spend around EUR 300m during this period to develop the airport.
Turkey Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.1.1 Increasing manufacturing sites
- 4.2.1.2 The increasing middle-income group and access to mortgage finance
- 4.2.2 Restraints
- 4.2.2.1 Rising cost of construction materials.
- 4.2.3 Opportunities
- 4.2.3.1 Increasing focus on building earthquake-resilient buildings.
- 4.3 Value Chain/Supply Chain Analysis
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers/Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Technological Innovations in the Construction Sector
- 4.6 Insights into Costs related to Construction and Building Materials
- 4.7 Government Regulations and Initiatives by the Industry
- 4.8 Spotlight on Prefabricated Buildings Market in Turkey
- 4.9 Brief on Real Estate Market and Key Real Estate Players
- 4.10 Insights into Services Allied to Construction (Design and Engineering, Fit-out Services, Facility Management, etc.)
- 4.11 Insights into Key Distributors/Traders of Construction Materials
- 4.12 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Sector
- 5.1.1 Residential
- 5.1.2 Commercial
- 5.1.3 Industrial
- 5.1.4 Infrastructure (Transportation)
- 5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration and Major Players)
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6.2 Company Profiles
- 6.2.1 Renaissance Construction
- 6.2.2 Polimeks Construction
- 6.2.3 Alarko Contracting Group
- 6.2.4 TAV Construction
- 6.2.5 Limak Insaat
- 6.2.6 Enka Insaat
- 6.2.7 Cengiz Construction, Industry & Trade Co.
- 6.2.8 Yapi Merkezi Insaat
- 6.2.9 Kolin Insaat
- 6.2.10 Nurol Construction and Trading Co.
- 6.2.11 Mapa Insaat
- 6.2.12 Tefken Insaat
- 6.2.13 Nata Insaat *
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
- 8.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
- 8.2 Key Production, Consumption, Export & Import Statistics of Construction Materials
Turkey Construction Industry Segmentation
The construction market includes a wide range of activities that cover upcoming, ongoing, and growing construction projects in different sectors, which include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures as well as infrastructure construction (like roads, railways, and airports) and power generation (transmission-related infrastructure). Construction is an industry that includes the erection, maintenance, and repair of buildings and other immobile structures and the building of roads and service facilities that become integral parts of structures and are essential to their use.
This report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovation and its impact, Porter's five forces analysis, and the impact of the COVID-19 pandemic on the market. In addition, the report also provides company profiles to understand the competitive landscape of the market.
The Turkish construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities). The report offers market size and forecasts for the Turkish construction market in value (USD) for all the above segments.
| By Sector | Residential |
| Commercial | |
| Industrial | |
| Infrastructure (Transportation) | |
| Energy and Utilities |
Turkey Construction Market Research FAQs
How big is the Turkey Construction Market?
The Turkey Construction Market size is expected to reach USD 53.31 billion in 2024 and grow at a CAGR of 5.12% to reach USD 68.43 billion by 2029.
What is the current Turkey Construction Market size?
In 2024, the Turkey Construction Market size is expected to reach USD 53.31 billion.
Who are the key players in Turkey Construction Market?
Renaissance Construction, Polimeks Construction, Alarko Contracting Group, Limak Insaat and TAV Construction are the major companies operating in the Turkey Construction Market.
What years does this Turkey Construction Market cover, and what was the market size in 2023?
In 2023, the Turkey Construction Market size was estimated at USD 50.58 billion. The report covers the Turkey Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Turkey Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Construction in Turkey Industry Report
Statistics for the 2024 Turkey Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Turkey Construction analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
