The "Turkey Construction Market Size, Trends and Forecasts by Sector Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Turkey registered a marginal annual decline of 0.9% in real terms in 2021, as the rise in construction material prices and the depreciation of the Turkish lira weighed on the progress of construction projects.
The lira depreciated by 44% against the US dollar over the year, due to the Central Bank of Turkey's (TCMB) unorthodox and aggressive easing of interest rates, despite rising inflation owing to global supply chain disruptions.
The TCMB has reduced interest rates by 500 basis points since September 2021, which caused a surge in inflation and construction prices in late 2021 and early 2022. According to the Turkish Statistical Institute (TurkStat), the average Construction Cost Index (CCI) rose by 41.3% in 2021, with the prices of construction materials and labor rising by 51% and 21.2%, respectively.
The industry is expected to remain weak in 2022, with output estimated to contract by 1.2% in real terms. In addition to a weak currency, rising inflation and rising construction prices, the industry's output this year will be affected by the ongoing Russia-Ukraine crisis, which will add further upward pressure on construction costs, owing to a rise in energy and materials costs.
The crisis is also likely to have a significant impact on investment in the tourism and manufacturing sectors. Overall, construction output is expected to be partially buoyed by public investment in the communication and transportation, energy, mining, education, healthcare and housing sectors, as part of the TRY184.3 billion ($20.8 billion) '2022 Investment Program' announced in January 2022.
Moreover, the government approved the national budget for the Financial Year (FY) 2022 (January to December 2022) in December 2021. The budget includes an expenditure of TRY1.8 trillion ($202.7 billion), including a capital expenditure of TRY132.3 billion ($14.9 billion) in 2022.
The Turkish construction industry is expected to pick up in 2023 and register annual expansions in the range of 2.3-5% between 2023 to 2026, supported by investments on transport, renewable energy and tourism infrastructure projects. The government aims to increase the share of renewable energy in electricity generation from 32.5% in 2018 to 38.8% by 2023.
It also aims to expand the country's rail network by increasing the total length of railway lines from 12,803km in 2021 to 16,775km by 2023, supported by foreign investment. In mid-March 2022, the British government announced a loan worth TRY20.4 billion ($2.3 billion) for construction of the 503km Ankara-Izmir electrified high-speed railway line.
Scope
- Historical (2017-2021) and forecast (2022-2026) 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 Our 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 Our critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
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
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View source version on businesswire.com: https://www.businesswire.com/news/home/20221004005731/en/
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