Turkish Construction Industry and Its Development
The construction industry and, accordingly, the construction materials industry has an important place in economic activities in the world. In recent years, the Turkish construction industry and building materials industry has also been increasing its traditional pioneering role. Increasing population and urbanization, infrastructure needs, improvement, and transformation need continuous growth in the construction sector. Finally, in the digitalization process, intelligent buildings, cities, and systems come to the fore, and the technology density of the construction and materials industries is increasing.
Significant shares are taken in the areas of added value, employment, and production created. Export and foreign exchange earning services constitute one of the essential elements of the sector. Commercial activities such as export of construction materials, overseas contracting and consultancy services, real estate sales to foreigners are also developing in Turkey. Many factors such as mega public projects, urban transformation, and infrastructure investments accelerate the construction sector. In this context, it is crucial to produce data on the construction industry and the construction materials industry both in the world and in Turkey.
Development of the Turkish Construction Industry
The Turkish Construction Sector, primarily based on the national capital, has a significant impact on the employment and production process as it concerns hundreds of professions. The sector, which has excellent experience and potential in the national and international fields, is the ‘locomotive sector’ to activate more than 200 sub-sectors connected to it. It is also the ‘sponge sector’ as it is an important source of employment. Its share in GNP is around 30% with the contribution of other sectors that provide input to the sector and continue their activities depending on the developments in this sector.
The construction sector in Turkey has shown severe development since the 1980s. In the 1993-2003 period, there was a contraction in the construction sector. Housing Sector has started to revive since 2004. In the first half of 2005, the rate of increase in building permits increased by 40% compared to the same period of the previous year.
In addition to these, Turkish Contractors have realized around 5000 projects in 70 countries since the early 1970s. Their total cost is around 130 billion USD. At the same time, companies that build detached houses designed to meet all the needs of their customers have also increased in the sector in recent years. One of the best quality examples of these companies is Bahçeli Müstakil Ev.
Turkey Sectoral Data
The construction sector was among the industries that were adversely affected by the epidemic. On the other hand, growth was observed in the real estate sector despite the effects of the epidemic. Total construction expenditures increased. At the same time, complete building permits increased based on area. In parallel with this, residential building permits and non-residential building permits have also increased on a field basis. In the same direction, there has been an increase in house sales.
Housing Sector
The housing sector continues to be the most important field of activity for the construction sector and the construction materials industry. In this framework, multidimensional and detailed indicators and evaluations regarding the housing sector are included. While the housing sector was a drag in the construction sector in all aspects in 2017, it shrank in 2018 and 2019. In 2020, with the support provided, the housing sector had a significant growth.
Housing sales increased in 2020 compared to the previous year. The epidemic in 2020 and the support given to the housing sector affected housing sales in two different ways. In the second quarter of the year, there was a significant decrease in house sales due to the epidemic. The support given to the housing sector, on the other hand, started to show its effects as of June. Low-interest housing loan campaigns significantly increased the housing demand, especially in the third quarter. Housing sales increased rapidly.
Source: Turkey IMSAD Building Sector Report.
Companies of Turkish Construction Industry
Many Turkish names are among the largest construction companies in the world. This list preparing according to the volumes of the businesses abroad. There are 46 companies from Turkey in the “World’s Top 250 International Contractors” list. Examples of these are companies such as Renaissance Construction, Limak Construction, Tekfen Construction and Installation.
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