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The Turkey construction market size reached USD 117.75 Billion in 2024 and is projected to reach USD 227.56 Billion by 2033, exhibiting a CAGR of 6.81% during 2025-2033. Growth is driven by massive post-earthquake reconstruction across southern provinces, government mandates for urban transformation, seismic retrofitting, green building standards, and large infrastructure mega-projects including the Istanbul Canal. Rising urbanization, population growth, and increased investment in energy infrastructure further amplify the market's expansion.

Study Assumption Years

• Base Year: 2024

• Historical Years: 2019-2024

• Forecast Period: 2025-2033

Turkey Construction Market Key Takeaways

• The Turkey construction market size reached USD 117.75 Billion in 2024.

• The market is projected to grow at a CAGR of 6.81% during 2025-2033.

• Forecast period spans from 2025 to 2033.

• Massive post-earthquake reconstruction efforts across southern provinces are reshaping the construction landscape.

• Government mandates focus on urban transformation, seismic retrofitting, and green building standards nationwide.

• Large-scale infrastructure mega-projects, including the Istanbul Canal and new railway lines, drive construction activities.

• Rising urbanization, population growth, and energy infrastructure investments are expanding the market.

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Market Growth Factors

The devastating February 2023 Kahramanmaraş earthquakes have spurred an unprecedented reconstruction program, reshaping the Turkey construction market. An additional EUR 200 million (USD 207.5 million) funding from the World Bank, matched by the French development agency AFD, totals EUR 400 million for constructing 2,800 resilient rural homes, part of a USD 1 billion recovery project. The program aims to provide housing for 16,000 people and expand to seven additional provinces. The initiative ensures compliance with Turkey’s latest seismic and climate-resilient building codes, promoting sustainable and energy-efficient construction.

Government mandates strongly support urban transformation, seismic retrofitting, and green building standards across Turkey. Regulatory reforms in 2024 simplified retrofitting processes by reducing consent thresholds from two-thirds to an absolute majority of property owners. Urban transformation in Istanbul districts like Küçükçekmece and Kartal replace aging housing with earthquake-resistant structures that improve livability. Enhanced financial incentives, including zero-interest loans and relocation subsidies, encourage retrofit and urban sustainability efforts.

Large-scale infrastructure projects, such as the Istanbul Canal gaining momentum in 2025 and the 224 km Kars–Iğdır–Aralık–Dilucu railway line construction, bolster construction demand. The EUR 2.4 Billion railway project, financed by USD 2.8 Billion led by Mitsubishi UFJ Financial Group, connects Turkey to Azerbaijan’s Naxçıvan exclave. Concurrently, Turkey’s energy sector expansion through renewable energy and electricity generation capacity enhances construction opportunities. These initiatives capitalize on Turkey’s strategic Europe-Asia position, catalyzing economic growth via construction activities.

Market Segmentation

Sector Insights:

• Residential: Includes construction of housing units, boosted by reconstruction and urban transformation mandates.

• Commercial: Development driven by urban redevelopment and infrastructure growth.

• Industrial: Reflects growth aligned with energy infrastructure and industrial expansion.

• Infrastructure (Transportation): Encompasses projects like the Istanbul Canal, high-speed rail lines, and cross-border railways (e.g., Kars–Iğdır–Aralık–Dilucu).

• Energy and Utilities: Focuses on renewable energy targets and expanding electricity generation capacity, supporting economic growth.

Regional Insights

The Turkey construction market features key regions including Marmara, Central Anatolia, Mediterranean, Aegean, Southeastern Anatolia, Black Sea, and Eastern Anatolia. Post-earthquake reconstruction heavily influences southern provinces, accelerating demand notably in these areas. Major urban transformation zones in Istanbul, within Marmara region, such as Küçükçekmece and Kartal, are experiencing substantial redevelopment. The strategic development of transport infrastructure like rail lines also enhances connectivity between regions and neighboring countries, fostering balanced regional growth.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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