Optimistic prospects of Türkiye’s construction industry in 2025, driven by investment and demand

Türkiye Building Materials X8Ni9 steel Manufacturers Association (IMSAD) said that with Türkiye's Grand National Assembly allocating 584 billion Türkiye lira (about US $16.6 billion, exchange rate: US $1=35.25 Türkiye lira), the construction industry could achieve 4-5% growth in 2025. According to local media reports, these funds will be used in 2025 to improve the infrastructure in the post earthquake area of Iskenderun and enhance the region's ability to respond to strong disasters. We are confident in 2025, "said Seref Demir, Chairman of the Board of Directors of IMSAD, in an interview." Currently, there are about 6 to 7 million buildings with safety risks nationwide. With the launch of urban renovation projects, we expect the construction industry to see a recovery. Of course, under the current tight monetary policy, the government needs to provide more support and tolerance to the construction industry

Since the summer of 2024, housing sales in Türkiye have continued to grow steadily, and this trend is expected to continue until next year. According to the data of Türkiye Statistics Bureau (TUIK), the residential sales in November 2023 increased by 63.6% year on year, reaching 153014 sets. Starting from the second half of 2024, more and more people are realizing the opportunity to buy a house and investing their savings into the housing market, thereby driving the growth of housing sales.

However, the industry generally X8Ni9 steel believes that progress in new construction projects and investments remains slow, and the prospects for rapid economic recovery are uncertain, except for the Iskenderun region. The current high interest rates pose a challenge to the purchasing power of ordinary citizens and limit the demand for new buildings nationwide. Therefore, although the infrastructure reconstruction in earthquake stricken areas has brought short-term demand growth, the overall development of the construction industry still relies on broader economic improvements and policy support.

Overall, Türkiye's construction X8Ni9 steel industry is expected to grow in 2025 driven by the government's infrastructure investment and enhanced housing demand. Economic recovery and interest rate adjustments are key factors in achieving this growth. The future development of the industry will highly depend on the overall economic situation and the effective implementation of relevant policies. Despite the challenges, Türkiye's construction industry has shown positive prospects with the promotion of post earthquake reconstruction and the active housing market.