The construction industry has considerable importance for Turkey, with its added value to the economy and the employment opportunities it creates for society. The Turkish construction industry grew steadily until 2018, when it began to shrink, then reached nearly one percent negative growth in 2021. The measures taken to prevent the spread of the coronavirus (COVID-19), the delays and cancellations in existing projects, and the decreasing demand for real estate caused this sharp contraction in the industry lately. Even though it has also decreased over recent years, the construction industry’s added value to the country’s gross domestic product (GDP) was still significant, totaling 5.4 percent in 2021. The Turkish construction market is estimated to record a CAGR of over 4% during the forecast period, driven by the government’s plans to upgrade transport and energy infrastructure.

Due to the COVID-19 pandemic, the construction industry has taken significant hits in Turkey, with construction site closures, project cancellations, supply chain disruptions, and cash stagnation. Because the construction sector is interconnected with over 200 subsectors, any disruption in one of them is expected to cause a ripple effect in the construction sector.

In 2021, the Asian Infrastructure Investment Bank (AIIB) approved USD 338.02 million in funding for Turkey’s Ispartakule-Cerkezkoy Railway Project. The European Bank for Reconstruction and Development (EBRD) will contribute USD 169.01 million to this project. A new double-track electrified high-speed railway will be built between Ispartakule and Cerkezkoy as part of this project.

 Some of the most important ongoing mega projects include Istanbul New Airport, valued at an estimated USD 12.8 billion and expected to be completed by 2028. 

Investors are highly interested in focusing on long-term business opportunities with Turkish infrastructure sector. This is a result of implementing numerous infrastructure projects through Public and Private Partnership by both national and local authorities in Turkey. Main infrastructure projects expected soon are in education, energy, defense, health, transportation and other public services. Similarly, infrastructure opportunities are also present in Turkey’s privatization program. Turkey’s privatization efforts totaled USD 44 billion in the last eight years.

Tighter credit availability, highly competitive market, newly evolving accounting standards, ever-changing tax concerns all raise the challenges for construction companies. Therefore, you need experienced professionals who understand your industry and will work to understand you. As your business partner at ICS, we understand construction. 

We provide services to construction clients, including:

  • Commercial contractors and developers
  • Specialty contractors (electrical, structural, HVAC, plumbing, concrete)
  • Architectural and engineering firms
  • Highway and street construction
  • Residential contractors