Turkey Construction Market Size, Share, Trends and Forecast by Sector and Region, 2025-2033

Turkey Construction Market Overview:

The Turkey construction market size reached USD 117.75 Billion in 2024. The market is projected to reach USD 227.56 Billion by 2033, exhibiting a growth rate (CAGR) of 6.81% during 2025-2033. The market is driven by massive post-earthquake reconstruction efforts driving construction demand across southern provinces, government mandates for urban transformation, seismic retrofitting, and green building standards, and large-scale infrastructure mega-projects including Istanbul Canal accelerating construction activity. Additionally, rising urbanization, population growth, and increasing investment in energy infrastructure are expanding the Turkey construction market share.

Turkey Construction Market Trends:

Massive Post-Earthquake Reconstruction Efforts Driving Construction Demand Across Southern Provinces

The devastating February 2023 Kahramanmaraş earthquakes have catalyzed an unprecedented reconstruction program that is fundamentally reshaping the nation's construction landscape, creating an immediate and sustained demand for massive reconstruction efforts. In March 2025, the World Bank extended an additional €200 million (USD 207.5 million) to Türkiye for the construction of 2,800 resilient rural homes in earthquake-affected areas, matching funds from the French development agency AFD, bringing the total investment to €400 million. The funding, part of the USD 1 billion Türkiye Earthquake Recovery and Reconstruction Project, aims to provide permanent housing for 16,000 people and expand coverage to seven additional provinces. The initiative emphasizes compliance with Türkiye’s latest seismic and climate-resilient building codes to ensure sustainable, energy-efficient construction aligned with national reconstruction priorities. The Turkish government pledged swift reconstruction, with promises to complete two hundred thousand housing units by the end of 2024, though implementation has faced challenges from rising construction material costs, labor shortages, and complex land expropriation issues. Post-earthquake legal reforms expedited urban regeneration by allowing owners with simple majority of land shares to conduct transactions including plot division, partial abandonment for public use, reconstruction, and land purchase. All reconstruction efforts adhere to a build-back-better approach ensuring resilience to future seismic and climate hazards with significant energy efficiency improvements, prioritizing compliance with Turkey's latest seismic and climate-resilient building codes while incorporating universal access principles and sustainable infrastructure solutions. The reconstruction boom has significantly inflated construction costs in affected regions, driven by opportunistic pricing amid unprecedented demand.

Government Mandates for Urban Transformation, Seismic Retrofitting, and Green Building Standards

Turkey has implemented comprehensive regulatory reforms aimed at transforming urban areas, retrofitting earthquake-vulnerable buildings, and mandating sustainable construction practices throughout the nation. Urban transformation initiatives in Turkey have evolved significantly with updates emphasizing resilience against earthquakes and sustainable urbanization, with stricter seismic risk assessments, especially in high-density urban areas, enhanced financial incentives including zero-interest loans as well as expanded relocation subsidies to ease economic burdens on property owners, and new provisions requiring integration of green building practices such as energy-efficient designs and sustainable construction materials. The simplified decision-making processes enacted in 2024 made retrofitting high-risk buildings more accessible, allowing retrofitting permits to be obtained with consent of an absolute majority of building property owners rather than the previous two-thirds threshold, addressing challenges in multi-owner structures and ensuring retrofitting projects are not delayed due to dissent from minority property owners. Major urban transformation areas in Istanbul including Küçükçekmece, Zeytinburnu, Fikirtepe, Bağcılar, Tuzla, and Kartal are undergoing substantial redevelopment with goals to replace aging housing with contemporary earthquake-resistant structures while enhancing overall livability, creating significant construction opportunities and fueling the Turkey construction market growth.

Large-Scale Infrastructure Mega-Projects Including Istanbul Canal Accelerating Construction Activity

Turkey is pursuing ambitious large-scale infrastructure development programs that are driving substantial construction activity across transportation, energy, and urban development sectors. The Istanbul Canal project, one of Turkey's most ambitious infrastructure initiatives, received renewed momentum in 2025. Beyond the Istanbul Canal, Turkey is focusing on the development of new double track alignments and civil works for high-speed rail line, reflecting continued government investment in transportation infrastructure. In September 2025, Türkiye launched the construction of the 224 km Kars–Iğdır–Aralık–Dilucu railway line, extending its rail network to Azerbaijan’s Naxçıvan exclave and strengthening regional connectivity. The EUR 2.4 Billion project, awarded to Kalyon İnşaat, includes five stations, five tunnels, 19 cut-and-cover tunnels, 10 bridges, and will handle up to 15 Million Tonnes of freight annually. Backed by a USD 2.8 Billion financing package led by Mitsubishi UFJ Financial Group, the project supports Türkiye’s investment in cross-border infrastructure, enhancing trade links between the Caspian and Mediterranean regions. The energy sector is also witnessing significant construction activity as Turkey pursues renewable energy targets and expands electricity generation capacity to support economic growth and reduce dependence on imported energy. These large-scale infrastructure investments, combined with Turkey's strategic geographic position connecting Europe and Asia, position the construction sector as a critical driver of economic development while creating substantial opportunities for both domestic and international contractors, equipment suppliers, materials manufacturers, and construction service providers across the expanding Turkish construction market.

Turkey Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on sector.

Sector Insights:

• Residential
• Commercial
• Industrial
• Infrastructure (Transportation)
• Energy and Utilities

The report has provided a detailed breakup and analysis of the market based on the sector. This includes residential, commercial, industrial, infrastructure (transportation), and energy and utilities.

Regional Insights:

• Marmara
• Central Anatolia
• Mediterranean
• Aegean
• Southeastern Anatolia
• Black Sea
• Eastern Anatolia

The report has also provided a comprehensive analysis of all major regional markets. This includes Marmara, Central Anatolia, Mediterranean, Aegean, Southeastern Anatolia, Black Sea, and Eastern Anatolia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Turkey Construction Market Report Coverage:

Key Questions Answered in This Report:

• How has the Turkey construction market performed so far and how will it perform in the coming years?
• What is the breakup of the Turkey construction market on the basis of sector?
• What is the breakup of the Turkey construction market on the basis of region?
• What are the various stages in the value chain of the Turkey construction market?
• What are the key driving factors and challenges in the Turkey construction market?
• What is the structure of the Turkey construction market and who are the key players?
• What is the degree of competition in the Turkey construction market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Turkey construction market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Turkey construction market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Turkey construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.