Development of the Construction Sector in Turkey

The first important steps in the field of construction started in Ankara in the first years of the Republic. despite all the difficulties in the city, lack of transportation and materials, a reconstruction activity was started in accordance with the traditional building style of the environment. The materials used were primitive materials such as wood, adobe, coarsely chipped stone.


The first construction activities of this period were seen in road constructions in the transportation sector. However, the lack of trained technical staff caused the work to be carried out for a while in foreign companies, specialists and consultancy.


Until the 1960s, the construction sector gained a great momentum thanks to the investments of the organizations that made investments with the support of the state.


After 1950, the rate of urbanization started to increase, housing presentation forms and institutional structures could not meet the housing needs required by the speed of urbanization. A solution to the problem was sought through political views in the multi-party period, and after the establishment of the Ministry of Housing and Settlement in 1958, it was given to this Ministry to find solutions to housing and urbanization problems.


While the development of the Construction and Contracting Sector gained momentum in this period, Turkey’s entry into NATO in 1952 increased its infrastructure investments and gave companies the chance to both work with foreigners and gain experience and to have a machine park at low costs. This situation continued until the crisis of the state economy in the late 1970s.


Due to the economic problems experienced in 1979 and 1980, fundamental changes were made in the name of economic policies. As a result of these changes, the construction sector reached high growth data between 1980-1987 compared to previous years.


The disintegration of the Soviet Union in the 1990s and the fact that it was replaced by many new states attracted the attention of Turkish companies and created new international market opportunities.


The economic crisis that occurred in the domestic market in 2001 had a greater impact on the appearance of Turkish construction companies in international markets. Construction activities, which were not attractive in the domestic market, have become attractive in international markets. According to the research conducted by the Turkish Contractors Association (TMB), developments in the sector have occurred as a result of economic growth.


The construction sector, which started to grow since 2004, experienced a record growth in 2005. The construction sector was the fastest growing sector in 2005 with a total growth rate of 21.5%. The sector continued its growth rate in 2006 and 2007 as a result of positive developments, and this situation continued until the 2008 economic crisis. In the last ten years, excluding the crisis years 2008-2009, the construction sector has grown by 11%.

In recent years, the construction industry, which has signed important projects such as Istanbul Airport, Yavuz Sultan Selim Bridge, Eurasia Tunnel, Istanbul Finance Center and Gebze-Izmir Highway, has entered into a growth and development process again with the cooperation of the public-private sector.

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