Turkey’s construction sector has been a hive of activity in the first half of 2017, showing steady overall growth in line with the country’s economy.
According to the Turkish Statistical Institute (TurkStat) and the Banking Regulation and Supervision Agency, the construction sector grew 6.4% over the first six months of this year, making it the most active sector of the economy. This high growth rate has seen to be continuing into the second half of the year, leading to forecasts of a growth rate of 7.5% by the end of 2017. This headway has contributed to the Turkish economy’s 5.1% growth over the period and its predicted 5.5% annual growth.
TurkStat reports an enormous 32.5% jump in total construction expenditure over the first six months of the year compared to that of 2016, reaching 252.6 bn TL ($67 bn). This increase is expected to level out at an average of 30% for the year amounting to 550 bn TL ($152 bn).
The construction materials market was valued at 123.6 bn TL ($32 bn) in the first half of the year. Domestic production has seen a slight 3% increase from January – September 2017. Exports of construction materials increased 4.1% totalling $10.64 bn, while imports declined 11.6% totalling $5.79 bn.
In terms of space, the total number of building licenses obtained in the first half of 2017 increased by 16.3% to reach 123.87 m sqm. When compared to the first half of the previous year, residential building licenses obtained increased 21.7% to 98.6 m sqm, while non-residential building licenses declined 0.3% to 25.71 m sqm. Having significantly shrunk in the first quarter of the year, a dramatic expansion was seen in the second quarter, partly due to a rush to obtain licenses before new, more restrictive bylaws came into force on 1 October 2017.
Interest in the property market has soared, with a 34.3% rise in foreigners purchasing real estate. This has brought in a total of $2.42 bn to the market.