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Turkey Commercial Construction Market Analysis

The Turkey Commercial Construction market is estimated to register a CAGR of greater than 5% during the forecast period.

• The construction sector in Turkey has been contracting for 5 consecutive quarters with increasing rates since the third quarter of 2021. The construction sector contracted by 14.1%. The contraction in the construction sector is not unique to the third quarter of 2022. Though Turkey's economy, has been growing under the leadership of construction for many years, the construction sector has contracted in 14 of the last 17 quarters as of December 2022.
• In other words, since the summer of 2018, construction has only been able to grow for 3 quarters. Another construction-specific change in GDP data is noticeable. The construction sector's, share in the overall economy increased from 4% to 9% in the 2000s but it has been rapidly losing this weight in recent years.
• As of 2017, first the sector began to lose momentum and then began to contract. In this process, the share of construction in the economy also declined and decreased to 4.8% in the first 9 months of 2022. This is the lowest value since 2003.
• In other words, the share of the sector in the economy has returned to about twenty years ago. In order to return to growth in the sector, there is a need for a revival in construction investments and a solution to the problem of an increase in chronic input costs.
• As of mid-year 2022, Istanbul has a 68.8% occupancy rate, followed by Antalya with a 57.2% occupancy rate. As a result, there was a greater need for hotel building in these cities. 100,700 square metres of warehouse trades were reported for the first quarter of 2022.
• Therefore, 553,671 sq. m. was the overall transaction volume for the year's first three quarters. Currently, there is a shortage of suitable warehouses and a significant demand for facilities with sizable interior spaces. As a result, the industrial sector will see a rise in building activity due to the limited availability and rising demand for suitable warehouses.
• The commercial construction sector in Turkey is driven by increasing demand for office space, warehouses, hospitals, shopping centers, and hotels. The lodging industry's recovery reached new levels in the first half of 2022, despite increasing global economic and geopolitical uncertainty. The recovery continued to favor leisure and resort destinations.
• Urban markets also saw greater momentum as more employees returned to the office and leisure travelers returned to city centers with the lifting of mask mandates and restrictions. As of mid-year 2022, 16.4 million foreigners visited Turkey. The highest number of foreign visitors was recorded during June, with more than 5 million visitors. While the number of foreign visitors increased by 185.7% compared to the previous year, it was 9.5% below the pre-pandemic period, but nevertheless signalled an accelerated recovery.
• Due to COVID-19, the construction industry in Turkey was the most negatively impacted industry. Due to the epidemic, Turkey's locomotive industry, the construction sector, was through some very trying times.
• Work had ceased at several construction sites, and many companies were attempting to finish their projects remotely or on a rotational basis. With the easing of pandemic limitations, the industry is attempting to regain its prior vigour. Although the sector's financials are negatively impacted by growing prices and declining turnover, a rebound is anticipated depending on the actions implemented in the second half of 2021.

Turkey Commercial Construction Market Trends

Office Space Demand Fuelling the Market Growth

Turkey Commercial Construction Industry Segmentation

Commercial construction involves building projects that can be leased or sold in the private sector. These spaces can be anything from offices and manufacturing plants to medical centers and retail shopping centers.

The report provides a comprehensive background analysis of the Turkey Commercial Construction market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.Turkey Commercial Construction Market is segmented by Type (Office Building Construction, Retail Construction, Hospitality Construction, Institutional Construction, and Others). The report offers market sizes in value (USD) for all the above segments.