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Construction in Turkey - Key Trends and Opportunities to 2019

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Date: 30-Nov-2015
No. of pages: 78
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Synopsis

The Turkish construction industry will continue to expand in real terms over the forecast period (2015-2019), with investment in infrastructure construction, healthcare, industry, education facilities and housing projects continuing to drive growth. Growth will also be driven by the country's Vision 2023, under which the government aims to develop the country's road, rail, airport and other related infrastructure.

In real terms, the industry's output value rose at a compound annual growth rate (CAGR) of 6.42% during the review period (2010-2014), although this is forecast to decelerate to 4.90% over the forecast period, due to the rising mortgage interest rate and economic slowdown.

The government is focusing more on high-speed railways and highway construction, as robust and modern transport is vital for the growth and competitiveness of the economy.

Government efforts to reduce the infrastructure gap through urban transformation will also support the growth of the industry over the forecast period.

Summary

Timetric's Construction in Turkey - Key Trends and Opportunities to 2019 report provides detailed market analysis, information and insights into the Turkish construction industry including:


  • The Turkish construction industry's growth prospects by market, project type and type of construction activity

  • Analysis of equipment, material and service costs across each project type within Turkey

  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Turkish construction industry

  • Analyzing the profiles of the leading operators in the Turkish construction industry.

  • Data highlights of the largest construction projects in Turkey


Scope

This report provides a comprehensive analysis of the construction industry in Turkey It provides:


  • Historical (2010-2014) and forecast (2015-2019) valuations of the construction industry in Turkey using construction output and value-add methods

  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

  • Analysis of key construction industry issues, including regulation, cost management, funding and pricing

  • Detailed profiles of the leading construction companies in Turkey


Reasons To Buy


  • Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies

  • Assess market growth potential at a micro-level with over 600 time-series data forecasts

  • Understand the latest industry and market trends

  • Formulate and validate business strategies using Timetric's critical and actionable insight

  • Assess business risks, including cost, regulatory and competitive pressures

  • Evaluate competitive risk and success factors


Key Highlights


  • According to CBRT, residential housing prices remained buoyant in the first eight months of 2015. The country's average housing price index (HPI) grew by 14.5% from 2013 to 2014. This was preceded by annual growth of 12.7%, 11.7% and 10.2% in 2013, 2012 and 2011 respectively. The largest increase in house prices was recorded in Istanbul, the largest city in Turkey, where the average HPI grew by 22.3%, in 2013 to 2014, while house prices in Izmir and Ankara rose by 13.2% and 11.2% respectively. Prices are expected to remain buoyant over the forecast period, backed by an increase in demand due to the growing number of overseas property buyers, mainly from the Middle East and Russia. According to TurkStats, the total number of international property buyers in the country increased by 41.0% in 2014, as compared to 2013.

  • Under the social housing program, to meet the rising housing demand coming from the country's lower- and middle-income groups, the Toplu Konut ?daresi Ba?kanl??? (TOK?), Turkey's housing development administration, is developing affordable housing projects across the country. In a bid to ensure housing for all residents by 2023, the TOK? plans to build 1.0 million homes with a coordination of the Ministry of Family and Social Policies-General Directorate of Social Benefits (SYGM) by 2023. Accordingly, various affordable housing projects were launched under the urban regeneration and slum transformation projects and social housing projects. The TOK? plans to develop affordable housing projects in highly populated cities such as Ankara, Istanbul, Bursa, ?zmir, Erzincan, Denizli, Erzurum, Trabzon and Gaziantep. In January 2015, under the slum transformation project, the government issued a tender for the transformation of 104,896 houses in the country. Consequently, various affordable housing projects will support the growth of the residential construction market over the forecast period.

  • As robust and modern transport infrastructure is vital for the growth and competitiveness of an economy, the government is focusing more on infrastructure development. Accordingly, TRY226.4 billion (US$100.0 billion) is planned to be spent under the Vision 2023 to develop the country's roads, highways, rail and airport infrastructure. The government plans to achieve these objectives through the PPP model as it lacks financial resources. Some of the major projects being developed through the PPP model include: the Marmaray project; Zafer airport in Kutahya; and the Gebze-Orhangazi-Izmir motorway. Efforts to develop the country's transport network will support the growth of the infrastructure construction market over the forecast period.

  • Rapid urbanization and the growing working population have elevated the demand for a fast and convenient transport system. Consequently, the government is investing heavily in the expansion of the country's rail network and high-speed railways. Accordingly, to improve the country's rail infrastructure and make it more effective for transport and logistics, the government plans to increase the length of the rail network from 12,000km in 2014 to 26,000km in 2025. Furthermore, the government also plans to connect major cities of Turkey through high-speed rail networks by 2023. Accordingly, the length of high- speed rail lines is expected to increase from 888km in 2014 to 10,000km in 2023. Ongoing high-speed rail projects include the Istanbul-Ankara, Ankara-Sivas, Bursa-Osmaneli and Sivas-Erzincan high-speed train projects. This will spur growth in transport infrastructure over the forecast period.

  • The government plans to build 35 health campuses and city hospitals across the country to increase access to quality and affordable healthcare. The government aims to achieve this target through the build-lease-transfer model. This will further add 40,000-50,000 beds to the Turkish hospital network. The Ministry of Health also plans to build Free Health Zones in major cities such as Istanbul and Ankara, which includes hospitals, thermal tourism facilities, nursing homes, rehabilitation centers, health techno-cities and research and development (R&D) centers.

Construction in Turkey - Key Trends and Opportunities to 2019

Table of Contents

1 Executive Summary

2 Industry Outlook
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction

3 Key Issues and Developments

4 Market Data Analysis
4.1 Construction Output and Value Add
4.1.1 Construction output by project type
4.1.2 Construction output by cost type
4.1.3 Construction output by activity type
4.1.4 Construction value add by project type
4.2 Commercial Construction
4.2.1 Commercial construction output by project type
4.2.2 Commercial construction output by cost type
4.2.3 Commercial construction output by activity type
4.2.4 Commercial construction value add by project type
4.3 Industrial Construction
4.3.1 Industrial construction output by project type
4.3.2 Industrial construction output by cost type
4.3.3 Industrial construction output by activity type
4.3.4 Industrial construction value add by project type
4.4 Infrastructure Construction
4.4.1 Infrastructure construction output by project type
4.4.2 Infrastructure construction output by cost type
4.4.3 Infrastructure construction output by activity type
4.4.4 Infrastructure construction value add by project type
4.5 Energy and Utilities Construction
4.5.1 Energy and utilities construction output by project type
4.5.2 Energy and utilities construction output by cost type
4.5.3 Energy and utilities construction output by activity type
4.5.4 Energy and utilities construction value add by project type
4.6 Institutional Construction
4.6.1 Institutional construction output by project type
4.6.2 Institutional construction output by cost type
4.6.3 Institutional construction output by activity type
4.6.4 Institutional construction value add by project type
4.7 Residential Construction
4.7.1 Residential construction output by project type
4.7.2 Residential construction output by cost type
4.7.3 Residential construction output by activity type
4.7.4 Residential construction value add by project type

5 Company Profile: Enka ?n?aat ve Sanayi A?
5.1 Enka ?n?aat ve Sanayi A? - Company Overview
5.2 Enka ?n?aat ve Sanayi AS - Business Description
5.3 Enka ?n?aat ve Sanayi AS - Main Products and Services
5.4 Enka ?n?aat ve Sanayi AS - History
5.5 Enka ?n?aat ve Sanayi AS - Company Information
5.5.1 Enka ?n?aat ve Sanayi AS - key competitors
5.5.2 Enka ?n?aat ve Sanayi AS - key employees

6 Company Profile: Nurol Holding Inc.
6.1 Nurol Holding Inc. - Company Overview
6.2 Nurol Holding Inc. - Business Description
6.3 Nurol Holding Inc. - Main Products and Services
6.4 Nurol Holding Inc. - History
6.5 Nurol Holding Inc. - Company Information
6.5.1 Nurol Holding Inc. - key competitors
6.5.2 Nurol Holding Inc. - key employees

7 Company Profile: Tekfen Holding Co., Inc.
7.1 Tekfen Holding Co., Inc. - Company Overview
7.2 Tekfen Holding Co., Inc. - Business Description
7.3 Tekfen Holding Co., Inc. - Main Products and Services
7.4 Tekfen Holding Co., Inc. - History
7.5 Tekfen Holding Co., Inc. - Company Information
7.5.1 Tekfen Holding Co., Inc. - key competitors
7.5.2 Tekfen Holding Co., Inc. - key employees

8 Company Profile: Kolin ?n?aat Turizm Sanayi ve Ticaret A?
8.1 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - Company Overview
8.2 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - Main Services
8.3 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - History
8.4 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - Company Information
8.4.1 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - key competitors
8.4.2 Kolin ?n?aat Turizm Sanayi ve Ticaret A? - key employees

9 Company Profile: Yap? Merkezi Holding Inc.
9.1 Yap? Merkezi Holding Inc. - Company Overview
9.2 Yap? Merkezi Holding Inc. - Business Description
9.3 Yap? Merkezi Holding Inc. - Main Products and Services
9.4 Yap? Merkezi Holding Inc. - History
9.5 Yap? Merkezi Holding Inc. - Company Information
9.5.1 Yap? Merkezi Holding Inc. - key competitors
9.5.2 Yap? Merkezi Holding Inc. - key employees

10 Appendix
10.1 What is this Report About?
10.2 Definitions
10.3 Methodology
10.4 Contact Timetric
10.5 About Timetric
10.6 Timetric's Services
10.7 Disclaimer

List of Tables

Table 1: Turkish Construction Output by Project Type (TRY Million), 2010-2014
Table 2: Turkish Construction Output by Project Type (TRY Million), 2014-2019
Table 3: Turkish Construction Output by Cost Type (TRY Million), 2010-2014
Table 4: Turkish Construction Output by Cost Type (TRY Million), 2014-2019
Table 5: Turkish Construction Output by Activity Type (TRY Million), 2010-2014
Table 6: Turkish Construction Output by Activity Type (TRY Million), 2014-2019
Table 7: Turkish Construction Value Add by Project Type (TRY Million), 2010-2014
Table 8: Turkish Construction Value Add by Project Type (TRY Million), 2014-2019
Table 9: Turkish Commercial Construction Output by Project Type (TRY Million), 2010-2014
Table 10: Turkish Commercial Construction Output by Project Type (TRY Million), 2014-2019
Table 11: Turkish Commercial Construction Output by Cost Type (TRY Million), 2010-2014
Table 12: Turkish Commercial Construction Output by Cost Type (TRY Million), 2014-2019
Table 13: Turkish Commercial Construction Output by Activity Type (TRY Million), 2010-2014
Table 14: Turkish Commercial Construction Output by Activity Type (TRY Million), 2014-2019
Table 15: Turkish Commercial Construction Value Add by Project Type (TRY Million), 2010-2014
Table 16: Turkish Commercial Construction Value Add by Project Type (TRY Million), 2014-2019
Table 17: Turkish Industrial Construction Output by Project Type (TRY Million), 2010-2014
Table 18: Turkish Industrial Construction Output by Project Type (TRY Million), 2014-2019
Table 19: Turkish Industrial Construction Output by Cost Type (TRY Million), 2010-2014
Table 20: Turkish Industrial Construction Output by Cost Type (TRY Million), 2014-2019
Table 21: Turkish Industrial Construction Output by Activity Type (TRY Million), 2010-2014
Table 22: Turkish Industrial Construction Output by Activity Type (TRY Million), 2014-2019
Table 23: Turkish Industrial Construction Value Add by Project Type (TRY Million), 2010-2014
Table 24: Turkish Industrial Construction Value Add by Project Type (TRY Million), 2014-2019
Table 25: Turkish Infrastructure Construction Output by Project Type (TRY Million), 2010-2014
Table 26: Turkish Infrastructure Construction Output by Project Type (TRY Million), 2014-2019
Table 27: Turkish Infrastructure Construction Output by Cost Type (TRY Million), 2010-2014
Table 28: Turkish Infrastructure Construction Output by Cost Type (TRY Million), 2014-2019
Table 29: Turkish Infrastructure Construction Output by Activity Type (TRY Million), 2010-2014
Table 30: Turkish Infrastructure Construction Output by Activity Type (TRY Million), 2014-2019
Table 31: Turkish Infrastructure Construction Value Add by Project Type (TRY Million), 2010-2014
Table 32: Turkish Infrastructure Construction Value Add by Project Type (TRY Million), 2014-2019
Table 33: Turkish Energy and Utilities Construction Output by Project Type (TRY Million), 2010-2014
Table 34: Turkish Energy and Utilities Construction Output by Project Type (TRY Million), 2014-2019
Table 35: Turkish Energy and Utilities Construction Output by Cost Type (TRY Million), 2010-2014
Table 36: Turkish Energy and Utilities Construction Output by Cost Type (TRY Million), 2014-2019
Table 37: Turkish Energy and Utilities Construction Output by Activity Type (TRY Million), 2010-2014
Table 38: Turkish Energy and Utilities Construction Output by Activity Type (TRY Million), 2014-2019
Table 39: Turkish Energy and Utilities Construction Value Add by Project Type (TRY Million), 2010-2014
Table 40: Turkish Energy and Utilities Construction Value Add by Project Type (TRY Million), 2014-2019
Table 41: Turkish Institutional Construction Output by Project Type (TRY Million), 2010-2014
Table 42: Turkish Institutional Construction Output by Project Type (TRY Million), 2014-2019
Table 43: Turkish Institutional Construction Output by Cost Type (TRY Million), 2010-2014
Table 44: Turkish Institutional Construction Output by Cost Type (TRY Million), 2014-2019
Table 45: Turkish Institutional Construction Output by Activity Type (TRY Million), 2010-2014
Table 46: Turkish Institutional Construction Output by Activity Type (TRY Million), 2014-2019
Table 47: Turkish Institutional Construction Value Add by Project Type (TRY Million), 2010-2014
Table 48: Turkish Institutional Construction Value Add by Project Type (TRY Million), 2014-2019
Table 49: Turkish Residential Construction Output by Project Type (TRY Million), 2010-2014
Table 50: Turkish Residential Construction Output by Project Type (TRY Million), 2014-2019
Table 51: Turkish Residential Construction Output by Cost Type (TRY Million), 2010-2014
Table 52: Turkish Residential Construction Output by Cost Type (TRY Million), 2014-2019
Table 53: Turkish Residential Construction Output by Activity Type (TRY Million), 2010-2014
Table 54: Turkish Residential Construction Output by Activity Type (TRY Million), 2014-2019
Table 55: Turkish Residential Construction Value Add by Project Type (TRY Million), 2010-2014
Table 56: Turkish Residential Construction Value Add by Project Type (TRY Million), 2014-2019
Table 57: Enka ?n?aat ve Sanayi AS, Key Facts
Table 58: Enka ?n?aat ve Sanayi AS, Main Products and Services
Table 59: Enka ?n?aat ve Sanayi AS, History
Table 60: Enka ?n?aat ve Sanayi AS, Key Employees
Table 61: Nurol Holding Inc., Key Facts
Table 62: Nurol Holding Inc., Main Products and Services
Table 63: Nurol Holding Inc., History
Table 64: Nurol Holding Inc., Key Employees
Table 65: Tekfen Holding Co., Inc., Key Facts
Table 66: Tekfen Holding Co., Inc., Main Products and Services
Table 67: Tekfen Holding Co., Inc., History
Table 68: Tekfen Holding Co., Inc., Key Employees
Table 69: Kolin ?n?aat Turizm Sanayi ve Ticaret A?, Key Facts
Table 70: Kolin ?n?aat Turizm Sanayi ve Ticaret A?, Main Services
Table 71: Kolin ?n?aat Turizm Sanayi ve Ticaret A?, History
Table 72: Kolin ?n?aat Turizm Sanayi ve Ticaret A?, Key Employees
Table 73: Yap? Merkezi Holding Inc., Key Facts
Table 74: Yap? Merkezi Holding Inc., Main Products and Services
Table 75: Yap? Merkezi Holding Inc., History
Table 76: Yap? Merkezi Holding Inc., Key Employees
Table 77: Timetric Construction Market Definitions

List of Figures

Figure 1: Turkish Construction Output (Real US$ 2010, Million), 2010-2019
Figure 2: Growth Matrix for Construction Output in Turkey (US$ Million), 2010-2019
Figure 3: Turkish Construction Output by Project Type (TRY Million), 2010-2019
Figure 4: Turkish Construction Output by Cost Type (TRY Million), 2010-2019
Figure 5: Turkish Construction Output by Activity Type (TRY Million), 2010-2019
Figure 6: Turkish Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 7: Turkish Commercial Construction Output by Project Type (TRY Million), 2010-2019
Figure 8: Turkish Commercial Construction Output by Cost Type (TRY Million), 2010-2019
Figure 9: Turkish Commercial Construction Output by Activity Type (TRY Million), 2010-2019
Figure 10: Turkish Commercial Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 11: Turkish Industrial Construction Output by Project Type (TRY Million), 2010-2019
Figure 12: Turkish Industrial Construction Output by Cost Type (TRY Million), 2010-2019
Figure 13: Turkish Industrial Construction Output by Activity Type (TRY Million), 2010-2019
Figure 14: Turkish Industrial Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 15: Turkish Infrastructure Construction Output by Project Type (TRY Million), 2010-2019
Figure 16: Turkish Infrastructure Construction Output by Cost Type (TRY Million), 2010-2019
Figure 17: Turkish Infrastructure Construction Output by Activity Type (TRY Million), 2010-2019
Figure 18: Turkish Infrastructure Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 19: Turkish Energy and Utilities Construction Output by Project Type (TRY Million), 2010-2019
Figure 20: Turkish Energy and Utilities Construction Output by Cost Type (TRY Million), 2010-2019
Figure 21: Turkish Energy and Utilities Construction Output by Activity Type (TRY Million), 2010-2019
Figure 22: Turkish Energy and Utilities Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 23: Turkish Institutional Construction Output by Project Type (TRY Million), 2010-2019
Figure 24: Turkish Institutional Construction Output by Cost Type (TRY Million), 2010-2019
Figure 25: Turkish Institutional Construction Output by Activity Type (TRY Million), 2010-2019
Figure 26: Turkish Institutional Construction Value Add by Project Type (TRY Million), 2010-2019
Figure 27: Turkish Residential Construction Output by Project Type (TRY Million), 2010-2019
Figure 28: Turkish Residential Construction Output by Cost Type (TRY Million), 2010-2019
Figure 29: Turkish Residential Construction Output by Activity Type (TRY Million), 2010-2019
Figure 30: Turkish Residential Construction Value Add by Project Type (TRY Million), 2010-2019

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