The Turkiye construction market size is forecast to increase by USD 51.64 billion from 2021 to 2026. The market is estimated to grow at a CAGR of 5.08%, according to a recent market study by Technavio. The growth of the market will be driven by the augmented demand for Turkiye real estate properties.
Technavio has extensively analyzed 15 major companies including Akdeniz Construction and Education, Alarko Holdings AS, Aydiner Construction Co. Inc., Beytturk, Dere Construction,ENKA insaat ve Sanayi AS, Feka, Ronesans Holding AS, TAV Tepe Akfen Investment Construction, and Tekfen Construction.
Key Benefits for Industry Players & Stakeholders
- The report offers information on the criticality of vendor inputs, including R&D, CAPEX, and technology.
- It also provides detailed analyses of the market’s competitive landscape and vendors’ product offerings.
- The report also provides a qualitative and quantitative analysis of vendors to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Turkiye Construction Market – Segmentation Assessment
The construction market in Turkiye research report extensively covers the construction market in Turkiye segmentation by end-user (residential, infrastructure, and commercial) and sector (private and public).
The market share growth by the residential segment is significant during the forecast period. Factors such as increasing residential housing developments and a rise in investment by foreign investors in infrastructural development will significantly contribute to the growth of this segment. Thus such developments will positively impact the market. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Key Drivers
The augmented demand for Turkiye real estate drives the market growth during the forecast period. Factors such s the rising middle-income group and increasing access to mortgage finance have fuelled the purchasing of homes by residential home buyers. Additionally, the ongoing promotional and marketing campaigns by banks and the easing of home loan interests are fuelling the sales of residential flats. For instance, international buyers bought 107,000 US residential properties totaling USD 54.4 billion from April 2020 to March 2021, down 31% and 27%, respectively, from the previous year and the lowest volumes since 2011. Furthermore, factors such as improvement in transportation, telecommunication, tourism, and power infrastructure in the country will drive market growth during the forecast period.
Significant Trends- The increasing focus on earthquake-resilient buildings is influencing the market growth during the forecast period.
Major Challenges- The increasing cost of construction materials is a major challenge hindering the market growth during the forecast period.
Image: build-review