ISTANBUL — Türkiye’s construction materials industry saw a 15.3% year-on-year increase in production in April 2025, marking a strong rebound after a slight contraction in the first quarter. The rise was largely attributed to a consistent number of working days during the month.
According to the June sector report published by the Turkish Construction Material Industrialists’ Association (Türkiye İMSAD), production had declined 1.4% annually in the first quarter but bounced back in April, with 21 out of 23 sub-sectors registering growth.
Leading Sectors: Gypsum, Plastics, Cement
The highest production growth was observed in gypsum-based construction products, which surged 42.5%. This was followed by plastic construction materials at 28.5%, and cement at 27%.
Other sub-sectors with double-digit production growth included:
- HVAC systems (heating, ventilation, and air conditioning)
- Metal doors and windows
- Insulated cables
- Iron and steel products
- Marble and granite
- Wood construction materials
- Ready-mixed concrete
- Electric lighting equipment
- Bricks and tiles
- Paints and varnishes
- Steel bars and profiles
- Steel radiators
Additional gains were noted in ceramic coatings, metal structures, laminated flooring, construction glass, concrete products, and faucets/valves.
However, two sub-sectors saw a decline:
- Ceramic sanitary ware, down 7.7%
- Locks and hardware, down 0.6%
Earthquake Zone Construction Spending Reaches ₺1.5 Trillion
The report also highlighted the massive reconstruction effort in Türkiye’s earthquake-affected regions. In 2023 and 2024, the construction sector grew 7.2% and 9.3%, respectively — outperforming the broader economy. The trend continued in the first quarter of 2025, with 7.3% growth, largely driven by rebuilding efforts.
From April 2023 to June 2025, construction spending in 13 quake-hit provinces totaled ₺1.15 trillion, including demolition, strengthening, and related works. When all sub-activities are included, total spending reached ₺1.5 trillion.
As of June 2025, 250,636 housing units were completed. Authorities aim to complete an additional 202,366 units by the end of the year, around 165,000 of which are residential homes.
Current Construction Activity and Orders Decline in June
Despite strong sector performance overall, the level of ongoing construction projects dropped sharply in June. Although new orders had recovered in May following a three-month decline, they fell by 1.8 points in June compared to the previous month.
Looking ahead, potential interest rate cuts could help revive momentum in the second half of the year, according to Türkiye İMSAD.
Source: Anadolu Ajansı/ Prepared by: İlayda Gök