Construction in Turkey – Key
Trends and Opportunities to 2015
Reference code: CN1024IR
Published: May 2012
www.timetric.com
EXECUTIVE SUMMARY
1 Executive Summary
The Turkish construction industry declined in value at an annual growth rate of -18.1% in 2009, due to
the adverse impact of the global economic crisis. However, it recovered rapidly and recorded a strong
annual growth rate of 23.7% in 2010. Prior to this, the industry recorded at a compound annual growth
rate (CAGR) of 11.61% during 2006–2008. This growth was supported by numerous factors, such the
country‘s expanding young population, economic stability, decreasing exchange and interest rates, and
attractive long-term loan rates, which made the country an attractive destination for construction
development. The significant growth achieved during 2006–2008 enabled the industry to record a CAGR
of 5.99% during the review period (2006–2010).
Residential construction was the largest market within the industry in 2010. The market value increased
at a CAGR of 4.86% during the review period, which enabled residential construction to generate a share
of 55.1% of the total construction industry value. The future outlook for the market is positive, as existing
housing stock in the country is expected to increase while the population rises from 71.4 million in 2011
to 76 million in 2015. Turkey has an unusually young demographic, as 50% of the population is below 29
years old. Furthermore, the working population accounts for a relatively large proportion of the total
population. This has a strong impact on economic growth, and is expected to generate significant
demand for housing over the forecast period. Timetric expects the Turkish residential construction market
will achieve a CAGR of 8.28% over the forecast period.
Infrastructure construction was the second-largest market within the industry in 2010, when it accounted
for a share of 26.2% of the overall construction industry value. Infrastructure construction was also the
second-fastest-growing market, after achieving a CAGR of 7.67% during the review period. Other
infrastructure was the largest individual category within the market in 2010. The Turkish infrastructure
construction market is expected to register the fastest growth rate over the forecast period, at a CAGR of
11.89%.
Commercial construction was the fastest-growing market over the review period