Construction sector extends growth streak to 10th quarter

ISTANBUL

Türkiye’s large construction industry continued to expand in the January-March period, extending its growth streak to the 10th straight quarter, according to a report by a business group.

Even though the rate of growth eased from the previous quarter, the construction industry expanded by 7.3 percent annually in the first quarter of 2025, which surpassed the GDP growth of 2 percent, the Association of Turkish Construction Material Producers (İMSAD) said.

While the impact of tightening policies remained limited, reconstruction activities in the earthquake-affected region, urban transformation, and other construction projects supported the construction sector, İMSAD said in its monthly report.

Construction expenditures increased nominally by 41.8 percent in the first quarter, reaching 1.85 trillion Turkish Liras.

In the first quarter of this year, construction expenditures grew by 6.9 percent in real terms, with earthquake-related construction activities playing a significant role in this growth, according to the report.

The share of the construction sector in the country’s GDP was 6.2 percent in the first quarter, rising from 5.5 percent in the final quarter of last year.

The real estate activities increased by 2.4 percent year-on-year in the first quarter, accelerating from the 1.3 percent expansion recorded in this sector in the final quarter of 2024, the association said, citing the latest GDP data unveiled on May 30.

Some indicators in the association’s report pictured a promising outlook for the construction sector.

The existing construction activities index rose 3.2 points in May, while confidence among construction companies increased by 3.6 points in the same month, according to the İMSAD report.

The index of new construction orders also showed a 1.9-point rise last month, the association said.

The sales in the housing market surged 56.6 percent year-on-year to surpass 118,000 units in April, the latest available data showed.

That followed the 5.1 percent annual increase in the previous month. Home sales soared 39.7 percent and 20.1 percent year-on-year in January and February, respectively.

From January to April, more than 454,000 homes were sold in Türkiye, marking a robust 27.9 percent increase compared to the same period of 2024.