The Monthly Sector Report of the Association of Turkish Building Material Producers (Türkiye İMSAD) announced the results for March.
According to the report evaluating the results for the construction sector and construction materials industry, there was a 3.3% increase in production in the construction materials industry in January.
While there was an increase in production in 10 sub-sectors of the construction materials industry, production decreased in 12 sub-sectors.
Last year, while construction materials industry production increased by 5.7% compared to 2022, many developments contributed to this rise. The primary factor among these elements was the 7.8% growth of the construction sector after a 5-year hiatus.
Urban transformation activities, reinforcement works, promises of preparation for earthquakes and disasters stood out in all municipalities before the local elections, and it is expected that the accelerated urban transformation activities will contribute 1.5 points to the growth of the construction sector in 2024.
Public construction activities expected to contribute 1 point to the sector While construction of non-residential buildings, public buildings, and social facilities continues in earthquake-prone areas, construction of 78,000 houses was completed in the region by the end of March. It is aimed to complete the construction of 122,000 more houses by the end of the year.
Although growth in public investments is limited this year, it is expected that ongoing and new priority projects will contribute 1 point to the growth of the construction sector through public construction activities. It is anticipated that there will be limited growth in private sector residential and non-residential construction activities in 2024 due to tightening policies and high interest rates and costs.
According to the report, employment levels are also increasing in the construction sector. Although employment, which rose to 1.78 million in the second half of 2023 and maintained its high level in the last quarter, decreased in January 2024 due to seasonality. Nevertheless, the employment level remained above the levels of January 2023 and 2022.”
source: aa.com.tr/ prepared by Melisa Beğiç