Türkiye’s construction sector stays resilient amid strong housing demand
File photo shows Sisecam Blocks in Istanbul, Türkiye, on Nov. 20, 2024. (IHA Photo)
Turkish Statistical Institute (TurkStat) reports that Türkiye’s construction production index rose by 10.8% year-on-year, while the number of employees in the construction sector increased by 6.3%.
When examining the sub-sectors of construction, the production index in November 2024 showed an annual increase of 14.3% in the building construction sector, 8.3% in non-building structures, and 0.9% in private construction activities.
On a monthly basis, the construction production index grew by 3.2% in November 2024. Compared to the previous month, the index increased by 3.7% in the building construction sector, 1.4% in non-building structures, and 2.9% in private construction activities.
Largest employment growth in construction sector
The growth in the construction sector also had a positive impact on the number of paid employees in the industry. According to statistics released by TurkStat on the same day, the number of employees in the construction sector increased by 6.3% compared to the same month last year, and by 0.4% compared to the previous month.
The Turkish real estate market recorded a 63.6% year-on-year increase, driven by strong housing demand as real-term prices continued to decline. The combination of rising nominal housing prices and decreasing real prices has created a unique situation where, although the cost of homes has increased in absolute terms, the relative affordability of properties has improved.
As a result, the construction sector has seen a surge in activity, particularly in the residential segment, which has directly contributed to the growth in employment within the industry.
The construction sector’s resilience, coupled with the continued government support for the projects, has played a crucial role in driving the sector’s growth, even amid global economic uncertainties.
