About this Section
This industry includes general construction and specialised construction activities for buildings and civil engineering works. It includes new work, repair, additions and alterations, the erection of prefabricated buildings or structures on the
site and also construction of a temporary nature.
General construction is the construction of entire dwellings, office buildings, stores and other public and utility buildings, farm buildings etc., or the construction of civil engineering works such as motorways, streets, bridges, tunnels, railways, airfields, harbours and other water projects, irrigation systems, sewerage systems, industrial facilities, pipelines and electric lines, sports facilities etc.
This work can be carried out on own account or on a fee or contract basis. Portions of the work and sometimes even the whole practical work can be subcontracted out. A unit that carries the overall responsibility for a construction project is classified here.
Also included is the repair of buildings and engineering works.
This industry includes the complete construction of buildings, the complete construction of civil engineering works, as well as specialised construction activities, if carried out only as a part of the construction process.
The renting of construction equipment with operator is classified with the specific construction activity carried out with this equipment.
This industry also includes the development of building projects for buildings or civil engineering works by bringing together financial, technical and physical means to realise the construction projects for later sale. If these activities are carried out not for later sale of the construction projects, but for their operation (e.g. renting of space in these buildings, manufacturing activities in these plants), the unit would not be classified here, but according to its operational activity, i.e. real estate, manufacturing etc.
Industries within this Section
- Civil engineering
- Construction of buildings
- Specialised construction activities
Outlook for Construction industry
Between 2010 and 2018, Turkey has an average annual GDP growth of 6.4 per cent while the construction sector grew on average 9.6 per cent in this period. Following the 14.0 per cent growth in the Construction industry in 2013, growth rates in 2014, 2015 and 2016 were relatively low. However, the Construction industry grew by 8.9 per cent in 2017 with the contribution of the public support provided. In 2017, there was a significant expansion in private and public construction in Turkey. While growth in the first quarter of 2018 was 6.9 per cent, due to increasing loan costs and depreciation of Turkish Lira since the second quarter of 2018, the growth rate of the sector was realized -1.9 per cent in 2018. This rate was the lowest level for the last ten years. In addition, the growth rate of the Construction industry was below the GDP in 2015 and 2018 despite the fact that it is generally above GDP. Construction plays a crucial role in Turkey’s economic development, accounting for nearly 8-9 per cent of GDP and employing more than 2 million people. When the direct and indirect impacts on other sectors are taken into account, the share of the Construction industry in the Turkish economy reaches 30 per cent.
Main activities of the industry
The Turkish construction industry is one of the large-sized industries in the Turkish economy in terms of industry’s share of turnover. In 2017, the industry generated about 517 billion TL in turnover. Construction industry’s divisions and groups are defined as follows.
- 41 - Construction of buildings
- 41.1 - Development of building projects
- 41.2 - Construction of residential and non-residential buildings
- 42 - Civil engineering
- 42.1 - Construction of roads and railways
- 42.2 - Construction of utility projects
- 42.9 - Construction of other civil engineering projects
- 43 - Specialized construction activities
- 43.1 - Demolition and site preparation
- 43.2 - Electrical, plumbing and other construction installation activities
- 43.3 - Building completion and finishing
- 43.9 - Other specialized construction activities
Sectoral analysis
The Construction industry can be divided into three sub-sectors at the NACE REV. 2 division level. Construction of buildings sub-sector (Division 41) dominated the overall level of activity in terms of its contribution to value added and employment in the industry. Its contribution was 60.1 per cent in terms of employment and 54.7 per cent in terms of value added in 2017. Specialized construction activities sub-sector (Division 43) provided 24.1 per cent of sectoral employment and 20.6 per cent of sectoral value added in 2017. Civil engineering sub-sector (Division 42) recorded 15.6 per cent of sectoral employment and 24.6 per cent of sectoral value added in 2017.
Report details
- 12 Oct 2019
- 45
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