Commercial Construction Market in Turkey to Achieve CAGR of 8.44% by 2016, Reports Timetric
04 Sep 2012 • by Natalie Aster
Turkey’s sustainable economy increased the country’s credibility in terms of business and construction investments. During the 2007–2011 review period, the country witnessed a significant rise in investments in key sectors such as education, healthcare, manufacturing and infrastructure. The growth in the construction industry during the review period was characterized by continued government encouragement of foreign direct investment (FDI) and public-private partnerships (PPPs) in the country. The country ranks as the world’s 13th-most attractive destination for FDI, according to the FDI confidence index, and over the 2012–2016 forecast period, when the global economic scenario is likely to improve with the EU and US economies stabilizing, Turkey will be able to attract increased investment from both domestic and foreign sources.
During the review period, the construction industry in Turkey recorded a CAGR of 6.48% to value TRY101.1 billion (US$60.5 billion) in 2011. FDI inflows in real estate, especially in cities such as Istanbul, have supported growth along with strong domestic demand. Over the forecast period, growth in the construction industry is expected to further improve as a result of increased government investment and higher FDI, as the eurozone crisis eases. Two construction markets, infrastructure and residential, together constituted 84.1% of the total Turkish construction industry in 2011. As a result, the markets’ contributions over the forecast period will be significant to the overall Turkish construction industry.
According to the report “Construction in Turkey – Key Trends and Opportunities to 2016” by Timetric, during the review period, the commercial construction market recorded a CAGR of 4.35% to value TRY10 billion (US$6 billion) in 2011. The growth was largely driven by the office buildings and retail buildings categories, which constituted 67.5% of the commercial construction market in 2011. Over the forecast period, Timetric expects the commercial construction market to achieve a CAGR of 8.44% to value TRY15 billion (US$9 billion) in 2016.
Construction in Turkey – Key Trends and Opportunities to 2016
Published: August, 2012
Price: US$ 1.950,00
During the review period, the infrastructure construction market recorded a CAGR of 6.80% to value TRY31.4 billion (US$18.8 billion), accounting for the second-largest share, after residential construction, of 31.1% in 2011. The increased size of the infrastructure market was due to the country’s rapidly growing economy and population, fetching investments to the sector. Over the forecast period, the construction of roads and power plants to meet basic infrastructure needs and to facilitate new OIZs will be the key stimulators. Timetric expects the market to achieve a CAGR of 8.67% to value TRY47.6 billion (US$28.5 billion) in 2016.
During the review period, the institutional construction market grew at a CAGR of 10.85%, which was contributed by the educational and healthcare categories. The residential construction market registered a CAGR of 7.51%, as a result of favorable demographics and strong economic performance.
More information can be found in the report “Construction in Turkey – Key Trends and Opportunities to 2016” by Timetric.
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