Summary
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 severely impacted construction activity, with the depreciation of the lira and high interest rates pushing up construction costs and the cost of borrowing.
The construction industry was significantly hit by the impact of restrictions imposed amid the COVID-19 outbreak in the first half of 2020. According to the Turkish Statistical Institute (TurkStat), the construction industry contracted by 1.8% year on year (YoY) in real terms in Q1, and 2.3% YoY in Q2 2020. The head of the Turkish Contractors’ Association reported that the construction sector is unlikely achieve its target of US$20 billion in 2020 due to the virus outbreak. However, the industry recovered in Q3 2020, with output expanding by 6.4% on a Y-o-Y basis following the lifting of lockdown measures.
The virus outbreak, coupled with worries about the sustainability of foreign debt in the financial sector, severely weakened investors’ confidence in the first half of 2020. The Turkish President’s unorthodox economic policy has also been a key worry for investors, given rising inflation and the weakness of the lira. However, there are signs that the government is starting to reform its economic policy framework. In November 2020, Finance Minister Berat Albayrak was replaced with the market friendly Lufti Elvan, and the government also appointed a new Central Bank chief, whose first significant policy decision was increasing the bank’s key interest rate.
GlobalData expects construction output to grow by 1.5% in 2020, and will retain growth momentum from 2021, posting an average annual growth of 4.6% between 2021-2024.
This report provides detailed market analysis, information, and insights into Turkey’s construction industry, including -
- Turkey’s 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 Turkey’s 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.
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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
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
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, Building Activity Index and Construction Confidence Index, Seasonally Adjusted
Figure 8: Turkey, Construction Turnover Index, Seasonal and Calendar Adjusted (2015=100)
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, Retail Sales Volume Index (2015 = 100)
Figure 15: Turkey, Total Foreign Visitors Arrivals
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)
