According to Timetric’s Construction Intelligence Centre, the Turkish construction industry will continue expanding in real terms between 2015 – 2019, with investment in infrastructure and housing projects continuing to form the driving factor behind this upwards trend.
In real terms, the industry’s output value rose at a compound annual growth rate of 6.42% during the last four years, although this growth is expected to reduce to 4.90% over the next four years, due to the rising mortgage interest rate and economic slowdown. As a result of this, the Turkish construction industry is expected to grow from US$98.4 billion in 2014 to US$124.9 billion in 2019. This will be further supported by the country’s infrastructure project, Vision 2023, along with growing urbanisation, rising population and foreign investment in real estate.
The largest marker in the Turkish construction industry during the review period was residential construct, which accounted for 52.0% of its total value in 2014. The market is expected to remain at the top over the forecast period, as it continues to be supported by favourable foreign investment policies.
Foreign investment in the country’s real estate increased by 41.7%, from TRY5.7 billion (US$3.0 billion) in 2013 to TRY9.7 billion (US$4.3 billion) in 2014. Affordable housing projects and liberal real estate laws will further market growth over the next five years.
Infrastructure will remain the second-largest market over the forecast period, holding a share of around 20.5% in 2014. The government is increasing focus on high-speed railways and highway construction, as robust modern transport is vital for the growth and competitiveness of the economy. The anticipated rise in tourist arrivals is likely to further increase demand for new airports and other transport facilities, adding even greater drive to market growth.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/08122015/turkish-construction-industry-will-continue-to-expand-141/