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Our team of economists have worked closely with our local experts to analyse an expansive cost dataset to provide insight into how the construction industry is performing. Use the filter below to access the full data breakdown for the individual market of your choice.

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Turkey - Istanbul

1 Economic outlook

Expansion of Turkey’s infrastructure opens opportunities

Turkey enjoyed strong economic growth in 2017, driven by household consumption, fixed investment, exports, industrial production and construction. Although growth in the economy is expected to ease over the next two years, the outlook remains one of solid expansion. The country has however seen inflation top 10 percent and unemployment at about 11 percent is continuing to rise.

2 Markets and trends

Turkey’s construction index shows activity up 14.2 percent in 2017 compared with the previous year. This follows a 10.8 percent rise in 2016. After this scale of growth, it is to be expected that the sector might ease in 2018, although remaining at a higher level relative to most recent years.

New infrastructure projects are opening development opportunities for new residential districts and commercial investors are heading for housing projects due to continued demand. Among the major infrastructure projects at various stages are the third airport in Ankara-Nidge Highway, the third Bosphorus, the Canal Istanbul, Dardanelle Bridge and Rize-Artvin Airport.

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Key Facts
Tendering: Lukewarm
Market: Staying the same
Cost escalation 2017–18: 10.0%
Cost escalation 2018–19: 15.0%
Contractor’s margin: 8.0%
Preliminaries: 10.0%
Location factor (USD): 39.6
PPP coefficient: 2.0

 

3 Future outlook

Although construction activity is expected to slow in 2018, the residential market is expected to hold up, supported by Turkey’s growing young population and internal migration to the cities. This is expected to raise the demand for power and utility projects.

 

 


This content is part of the International construction market survey 2018

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