The Turkish Contractors Association (TMB) has released the first Construction Sector Analysis Report of 2025. The report emphasizes that despite challenges, the sector continues to grow, while global geopolitical developments will remain influential in 2025.
The construction sector, which stands out with its contribution to the economy, faces financing and skilled labor shortages. While the slowdown of new projects is encouraged under the “Public Savings and Efficiency Package,” it is stated that postponed projects impose a heavy burden on contractors. TMB is demanding an unconditional termination right for these projects.
As urban transformation projects gain momentum, Turkey’s annual new housing demand ranges between 800,000 and 1 million units, with an additional 650,000 units needed due to the earthquake. It is emphasized that financial support and a solution to the skilled labor shortage are necessary for the renewal of risky housing units.
Turkish contractors undertook 316 projects worth $28.6 billion in 57 countries in 2024. The countries with the most projects secured were Saudi Arabia, the UAE, Uganda, Gabon, and Algeria. The sector continues to seek new opportunities while maintaining its traditional markets.
The construction sector recorded 9.2% growth in the third quarter of 2024, marking eight consecutive quarters of expansion. While geopolitical risks are expected to persist in the coming period, large-scale projects in Saudi Arabia and Iraq are projected to help surpass the annual $20 billion target.
Green transformation remains a priority for the sector. If the EU’s carbon emission regulations are not met, exports and international projects could be at risk. New regulations have increased financial adequacy criteria for contractors by 50%, while awarding additional points for green building projects to promote sustainability.
Housing sales increased by 53.4% in December 2024, reaching 212,637 units. Throughout the year, sales rose by 20.6% to 1,478,025 units. The highest sales were recorded in Istanbul, Ankara, and Izmir, while the lowest were in Ardahan, Hakkari, and Bayburt.