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Construction in Turkey - Key Trends and Opportunities to 2023

Published By :

GlobalData

Published Date : Jan 2019

Category :

Construction

No. of Pages : 51 Pages

Construction in Turkey - Key Trends and Opportunities to 2023

Summary

Construction activity in Turkey was weak in 2018, following the liquidity crisis and devaluation of the currency, which resulted in a deteriorating business environment. Moreover, political turmoil, terror attacks and fraying relations with Western countries also undermined investors confidence.

The industrys value is expected to pick up over the forecast period (2019-2023), with investments in residential property, transport infrastructure, energy, commercial and industrial projects, and improvement in consumer and investor confidence. Under the 11th five-year development plan 2019-2023, the government aims to transform the country into a top 10 global economy by 2023 and increase its manufacturing capacity and exports - for this, the government is developing road, airports and port infrastructure.

The industrys output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 4.48% over the forecast period, according to GlobalData.

GlobalDatas "Construction in Turkey - Key Trends and Opportunities to 2023", report provides detailed market analysis, information and insights into the Turkish construction industry, including -
- The Turkish 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 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.

Key Highlights

- GlobalData expects the residential construction market to account for 62.2% of the industrys total value in 2023 driven by ongoing urbanization, population growth and positive developments in regional economic conditions. Under Vision 2023, the Housing Development Administration of Turkey (TOK) plans to build 425,000 houses by 2023. Moreover, the government plans to demolish and renovate 6.7 million houses across the country by 2037.
- Energy and utilities construction markets growth in the forecast-period will be driven by the National Broadband Strategy and Action Plan for 2017-2020 through which the government aims to improve fiber connections and increase the capacity of internet connection across the country by 2020. Accordingly, the government is taking help from foreign companies to expand the broadband network in the country.
- GlobalData expects the infrastructure construction market to register a forecast-period CAGR of 8.18% in nominal terms driven by the governments focus to develop the countrys transport infrastructure. The government plans to increase the total length of road from 23,522km in 2018 to 37,000km by 2023. Under this, the government plans to build 5,748km of highways across the country during 2018-2023. Furthermore, the government plans to build 600km of bridges, comprising 9,000 bridges across the country by 2023.
- Forecast-period expansion in the commercial construction market will be driven by improvements in consumer and investor confidence, an increase in public and private sector investments in the construction of new commercial buildings, growth in disposable income and an increase in the countrys retail turnover. Rising tourist arrivals in the country are expected to drive market growth over the forecast period. The government plans to attract 50 million tourists and raise foreign exchange earnings to TRY136.0 billion (US$50.0 billion) by 2023.
- The total construction project pipeline in Turkey - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at TRY2.3 trillion (US$468.2 billion). The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards early-stage projects, with 53.4% of the pipeline value being in projects in the pre-planning and planning stages as of January 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Turkey. It provides -
- Historical (2014-2018) and forecast (2019-2023) 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.
Table of Contents
1. EXECUTIVE SUMMARY 2
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE 2
3. LATEST NEWS AND INDICATORS 8
4. KEY DRIVERS AND RISKS 11
4.1. Economic Performance 11
4.2. Political Environment 11
4.3. Demographics 12
4.4. Risk Profile 13
5. CONSTRUCTION OUTLOOK 14
5.1. All Construction 14
5.1.1. Outlook 14
5.1.2. Project analytics 17
5.2. Commercial Construction 20
5.2.1. Outlook 20
5.2.2. Project analytics 22
5.3. Industrial Construction 24
5.3.1. Outlook 24
5.3.2. Project analytics 25
5.4. Infrastructure Construction 27
5.4.1. Outlook 27
5.4.2. Project analytics 28
5.5. Energy and Utilities Construction 30
5.5.1. Outlook 30
5.5.2. Project analytics 32
5.6. Institutional Construction 34
5.6.1. Outlook 34
5.6.2. Project analytics 35
5.7. Residential Construction 37
5.7.1. Outlook 37
5.7.2. Project analytics 38
6. KEY INDUSTRY PARTICIPANTS 40
6.1. Contractors 40
6.2. Consultants 42
7. APPENDIX 44
7.1. What is this Report About? 44
7.2. Definitions 44
8. ABOUT GLOBALDATA 48
8.1. GlobalData at a Glance 48
8.2. GlobalData Construction 49
8.3. Disclaimer 50
8.4. Contact Us 50

List of Tables
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 2
Figure 2: Turkey, Construction Projects Pipeline by Sector (TRY Billion) 2
Figure 3: Turkey, Housing Unit Sold to Overseas Buyers (Total Numbers) 8
Figure 4: Turkey, Housing Price Index (2010=Base) 9
Figure 5: Turkey, Occupancy Permits Issued Area (Thousand, M2) 10
Figure 6: Turkey, Risk Reveiw 13
Figure 7: Turkey, Risk Comparison Review 13
Figure 8: Turkey, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate) 15
Figure 9: Turkey, Construction Output Value, Growth Matrix 15
Figure 10: Turkey, Construction Output Value, by Sector (TRY Million), 2014-2023 16
Figure 11: Turkey, Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 17
Figure 12: Turkey, Construction Projects Pipeline, Value by Stage (TRY Million) 17
Figure 13: Turkey, Commercial Construction Output by Project Type (TRY Million), 2014-2023 21
Figure 14: Turkey, Commercial Construction Projects Pipeline, Value by Stage (TRY Million) 22
Figure 15: Turkey, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 23
Figure 16: Turkey, Industrial Construction Output by Project Type (TRY Million), 2014-2023 24
Figure 17: Turkey, Industrial Construction Projects Pipeline, Value by Stage (TRY Million) 25
Figure 18: Turkey, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 26
Figure 19: Turkey, Infrastructure Construction Output by Project Type (TRY Million), 2014-2023 27
Figure 20: Turkey, Infrastructure Construction Projects Pipeline, Value by Stage (TRY Million) 28
Figure 21: Turkey, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 29
Figure 22: Turkey, Energy and Utilities Construction Output by Project Type (TRY Million), 2014-2023 31
Figure 23: Turkey, Energy and Utilities Construction Projects Pipeline, Value by Stage (TRY Million) 32
Figure 24: Turkey, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 33
Figure 25: Turkey, Institutional Construction Output by Project Type (TRY Million), 2014-2023 34
Figure 26: Turkey, Institutional Construction Projects Pipeline, Value by Stage (TRY Million) 35
Figure 27: Turkey, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 36
Figure 28: Turkey, Residential Construction Output by Project Type (TRY Million), 2014-2023 37
Figure 29: Turkey, Residential Construction Projects Pipeline, Value by Stage (TRY Million) 38
Figure 30: Turkey, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (TRY Million), 2018-2023 39
Figure 31: Turkey, Headquarters of Key Contractors (% of Total Project Pipeline) 41
Figure 32: Turkey, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 41
Figure 33: Turkey, Headquarters of Key Consultants (% of Total Project Pipeline) 43
Figure 34: Turkey, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 43

List of Figures
Table 1: Construction Outlook 2
Table 2: Turkey, Key Economic Indicators 11
Table 3: Turkey, Construction Output Value (nominal, TRY Million) 18
Table 4: Turkey, Construction Output Value (nominal, US$ Million) 19
Table 5: Turkey, Top Commercial Construction Projects by Value 23
Table 6: Turkey, Top Industrial Construction Projects by Value 26
Table 7: Turkey, Top Infrastructure Construction Projects by Value 29
Table 8: Turkey, Top Energy and Utilities Construction Projects by Value 33
Table 9: Turkey, Top Institutional Construction Projects by Value 36
Table 10: Turkey, Top Residential and Mixed-Use Construction Projects by Value 39
Table 11: Turkey, Key Contractors 40
Table 12: Turkey, Key Consultants 42
Table 13: GlobalData Construction Market Definitions 45
Table 14: Construction Risk Index Ratings and Scores 47

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