Construction in Turkey - Key Trends and Opportunities to 2025 (Q3 2021)
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Construction in Turkey - Key Trends and Opportunities to 2025 (Q3 2021)
Summary
GlobalData is forecasting the Turkish construction industry to grow by 5.6% in real terms this year, up from the earlier estimate of 3.8%. This revision has been brought about due to the progress in the civil engineering construction sector in Q2 2021. According to the Turkish Statistical Institute (TurkStat), the countrys construction turnover index in civil engineering construction grew by 12.7% on a quarter-on-quarter (Q-o-Q) basis in the second quarter of 2021; this was preceded by a decline of 5.5% quarter on quarter (QoQ) in Q1 2021. Moreover, on a year-on-year (Y-o-Y) basis, it increased by 19.3% in Q2 2021, while construction of utility projects increased by 55.5%, followed by the construction of buildings, which increased by 46.3% during the same period. However, the construction confidence index fell by 12.1% on a Q-o-Q basis in Q2 2021 - down from the growth rate of 2.5% in Q1, as a result of the third wave of infections. Moreover, the possible threat of a fourth wave could affect growth momentum in the construction industry, particularly if the government is forced to impose another lockdown.
The industry is expected to continue to recover and grow over the forecast period, driven by investment in renewable energy, education and transport infrastructure. The government plans to build 2,000km of high-speed rail lines from Kars in northeast Turkey to Edirne in the westernmost part of the country; this project is being partially financed by the Chinese Government. The government also aims to increase the share of renewable energy in electricity generation to 38.8% by 2023, compared to 32.5% in 2018. Spurred on by these investments, construction output is forecast by GlobalData to retain growth momentum over the forecast period, with average annual growth of 6% between 2022-2025. There are downside risks, however, as construction costs have soared in recent months, with the latest index on construction costs showing a Y-o-Y increase of 44.8% in July 2021, with materials costs rising by 56.4% and labor costs rising by 20.6%. This reflects the increase in domestic demand, while the surge in costs is also reflective of wider global supply imbalances and ongoing disruptions caused by Coronavirus (COVID-19). There are also risks associated with macroeconomic instability, given high inflation and a potential currency crisis.
GlobalDatas Construction in Turkey - Key Trends and Opportunities to 2025 (Q3 2021) report provides detailed market analysis, information and insights into the Turkish construction industry, including -
- The Turkish construction industrys 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 (2016-2020) and forecast (2021-2025) 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 GlobalDatas 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 GlobalDatas critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Summary
GlobalData is forecasting the Turkish construction industry to grow by 5.6% in real terms this year, up from the earlier estimate of 3.8%. This revision has been brought about due to the progress in the civil engineering construction sector in Q2 2021. According to the Turkish Statistical Institute (TurkStat), the countrys construction turnover index in civil engineering construction grew by 12.7% on a quarter-on-quarter (Q-o-Q) basis in the second quarter of 2021; this was preceded by a decline of 5.5% quarter on quarter (QoQ) in Q1 2021. Moreover, on a year-on-year (Y-o-Y) basis, it increased by 19.3% in Q2 2021, while construction of utility projects increased by 55.5%, followed by the construction of buildings, which increased by 46.3% during the same period. However, the construction confidence index fell by 12.1% on a Q-o-Q basis in Q2 2021 - down from the growth rate of 2.5% in Q1, as a result of the third wave of infections. Moreover, the possible threat of a fourth wave could affect growth momentum in the construction industry, particularly if the government is forced to impose another lockdown.
The industry is expected to continue to recover and grow over the forecast period, driven by investment in renewable energy, education and transport infrastructure. The government plans to build 2,000km of high-speed rail lines from Kars in northeast Turkey to Edirne in the westernmost part of the country; this project is being partially financed by the Chinese Government. The government also aims to increase the share of renewable energy in electricity generation to 38.8% by 2023, compared to 32.5% in 2018. Spurred on by these investments, construction output is forecast by GlobalData to retain growth momentum over the forecast period, with average annual growth of 6% between 2022-2025. There are downside risks, however, as construction costs have soared in recent months, with the latest index on construction costs showing a Y-o-Y increase of 44.8% in July 2021, with materials costs rising by 56.4% and labor costs rising by 20.6%. This reflects the increase in domestic demand, while the surge in costs is also reflective of wider global supply imbalances and ongoing disruptions caused by Coronavirus (COVID-19). There are also risks associated with macroeconomic instability, given high inflation and a potential currency crisis.
GlobalDatas Construction in Turkey - Key Trends and Opportunities to 2025 (Q3 2021) report provides detailed market analysis, information and insights into the Turkish construction industry, including -
- The Turkish construction industrys 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 (2016-2020) and forecast (2021-2025) 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 GlobalDatas 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 GlobalDatas 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
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
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 CRI Methodology
7.4 GlobalData Construction
Contact Us
Table 1: Construction Industry Key Data
Table 2: Turkey, Key Economic Indicators
Table 3: Turkey, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Turkey, Top Commercial Construction Projects by Value
Table 5: Turkey, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Turkey, Top Industrial Construction Projects by Value
Table 7: Turkey, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Turkey, Top Infrastructure Construction Projects by Value
Table 9: Turkey, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Turkey, Top Energy and Utilities Construction Projects by Value
Table 11: Turkey, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Turkey, Top Institutional Construction Projects by Value
Table 13: Turkey, Residential Construction Output by Project Type (Real % Change), 2016-2025
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 Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
Figure 1: Eastern Europe, Construction Output (Real % Change), 2020 and 2021
Figure 2: Turkey, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Turkey, COVID-19 Confirmed Cases
Figure 4: Turkey, Risk Summary
Figure 5: Turkey, Risk Regional Comparison
Figure 6: Turkey, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Turkey, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Turkey, Construction Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 9: Turkey, Building Activity Index and Construction Confidence Index, Seasonally Adjusted, % Change YoY
Figure 10: Turkey, Construction Turnover Index, Seasonal and Calendar Adjusted (2015=100), % Change YoY
Figure 11: Turkey, Number of People Employed in the Construction Industry, In Thousands, % Change YoY
Figure 12: Turkey, Gross Fixed Capital Formation (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 13: Turkey, Construction Projects Momentum Index
Figure 14: Eastern Europe, Construction Projects Momentum Index
Figure 15: Turkey, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 16: Turkey, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 17: Turkey, Value of Permits Approved for The Construction of Commercial Buildings, In TRY Million
Figure 18: Turkey, Services Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 19: Turkey, Total Foreign Visitors Arrivals, In Thousands
Figure 20: Retail Sales Volume Index (2015=100), % Change YoY
Figure 21: Turkey, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 22: Turkey, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: Turkey, Manufacturing Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 24: Turkey, Capacity Utilization Rate in The Manufacturing Industry, in %
Figure 25: Turkey, Industrial and Manufacturing Production Indices, Seasonally and Calendar Adjusted (2015=100)
Figure 26: Turkey, Total Export (US$ Million), % Change YoY
Figure 27: Turkey, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: Turkey, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Turkey, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Turkey, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Turkey, Value Add of Information and Communication Activities, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 32: Turkey, Energy Production Index (2015=100), % Change YoY
Figure 33: Turkey, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 34: Turkey, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 35: Turkey, Construction Permits Approved for Public Entertainment, Education, Hospital or Institutional Care Buildings, in TRY Million, % Change YoY
Figure 36: Turkey, Value Add of Public Administration, Education, Human Health and Social Work Activities, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 37: Turkey, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 38: Turkey, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 39: Turkey, Real Estate Activities Value Add, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 40: Turkey, Value of Permits Issued for Residential Buildings, In TRY Million, % Change YoY
Figure 41: Turkey, House Sales, % Change YoY
Figure 42: Turkey, Residential Property Price Index (RPPI) (2017=100), % Change YoY
Figure 43: Turkey, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 44: Turkey, Headquarters of Key Consultants (% of Total Project Pipeline)
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
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
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 CRI Methodology
7.4 GlobalData Construction
Contact Us
List Of Tables
List of TablesTable 1: Construction Industry Key Data
Table 2: Turkey, Key Economic Indicators
Table 3: Turkey, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Turkey, Top Commercial Construction Projects by Value
Table 5: Turkey, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Turkey, Top Industrial Construction Projects by Value
Table 7: Turkey, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Turkey, Top Infrastructure Construction Projects by Value
Table 9: Turkey, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Turkey, Top Energy and Utilities Construction Projects by Value
Table 11: Turkey, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Turkey, Top Institutional Construction Projects by Value
Table 13: Turkey, Residential Construction Output by Project Type (Real % Change), 2016-2025
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 Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List Of Figures
List of FiguresFigure 1: Eastern Europe, Construction Output (Real % Change), 2020 and 2021
Figure 2: Turkey, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Turkey, COVID-19 Confirmed Cases
Figure 4: Turkey, Risk Summary
Figure 5: Turkey, Risk Regional Comparison
Figure 6: Turkey, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Turkey, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Turkey, Construction Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 9: Turkey, Building Activity Index and Construction Confidence Index, Seasonally Adjusted, % Change YoY
Figure 10: Turkey, Construction Turnover Index, Seasonal and Calendar Adjusted (2015=100), % Change YoY
Figure 11: Turkey, Number of People Employed in the Construction Industry, In Thousands, % Change YoY
Figure 12: Turkey, Gross Fixed Capital Formation (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 13: Turkey, Construction Projects Momentum Index
Figure 14: Eastern Europe, Construction Projects Momentum Index
Figure 15: Turkey, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 16: Turkey, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 17: Turkey, Value of Permits Approved for The Construction of Commercial Buildings, In TRY Million
Figure 18: Turkey, Services Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 19: Turkey, Total Foreign Visitors Arrivals, In Thousands
Figure 20: Retail Sales Volume Index (2015=100), % Change YoY
Figure 21: Turkey, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 22: Turkey, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: Turkey, Manufacturing Value Add (TRY Million, 2009 Chain Linked Volume Measures), % Change YoY
Figure 24: Turkey, Capacity Utilization Rate in The Manufacturing Industry, in %
Figure 25: Turkey, Industrial and Manufacturing Production Indices, Seasonally and Calendar Adjusted (2015=100)
Figure 26: Turkey, Total Export (US$ Million), % Change YoY
Figure 27: Turkey, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: Turkey, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Turkey, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Turkey, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Turkey, Value Add of Information and Communication Activities, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 32: Turkey, Energy Production Index (2015=100), % Change YoY
Figure 33: Turkey, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 34: Turkey, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 35: Turkey, Construction Permits Approved for Public Entertainment, Education, Hospital or Institutional Care Buildings, in TRY Million, % Change YoY
Figure 36: Turkey, Value Add of Public Administration, Education, Human Health and Social Work Activities, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 37: Turkey, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 38: Turkey, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 39: Turkey, Real Estate Activities Value Add, In TRY Million, 2009 Chain Linked Volume Measures, % Change YoY
Figure 40: Turkey, Value of Permits Issued for Residential Buildings, In TRY Million, % Change YoY
Figure 41: Turkey, House Sales, % Change YoY
Figure 42: Turkey, Residential Property Price Index (RPPI) (2017=100), % Change YoY
Figure 43: Turkey, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 44: Turkey, Headquarters of Key Consultants (% of Total Project Pipeline)
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