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Building Products
By 2010, Turkey's population is estimated to reach 87 million, requiring an additional 5.5 million housing units. Added to the existing housing deficit,
this represents a requirement for more than 500,000 new housing units each year. In recognition of this critical demand, the government instituted a promotional program designed to spur new housing projects by
making financing more attractive. Houses less than 100 sq. meters (approximately 1,076 square feet) are marketed with credits featuring a 10-year pay back period. The payback period for houses exceeding 100
square meters is five years. Analysts believe this promotion will contribute to the growth in the housing sector. Additionally, with a growing economy and rapid urban expansion, there is a need for the
construction of more commercial/office/professional buildings. At the same time, the shopping mall / plaza concept is gaining popularity. Tourism development continues to generate new construction projects.
Turkish contractors are also active in Central Asia and neighboring countries, including Russia. A large number of the countries in the region rely on Turkey for building materials as well as construction
services. As a result, this "high value added" sector ranks third in the Turkish economy, following textiles and the food industry. However, the economic conditions in Turkey, which are highly
influenced by the world crisis, affect the building sector. Government projects, mostly infrastructure projects such as highways, bridges, airports, seaports, etc. have been slowed by the financial crunch.
Residential and industrial buildings are mostly completed by the private sector. While this portion of the sector is also influenced by the world financial conditions, there is still growth, albeit at a slower
rate. Most building materials are manufactured domestically by more than 5,500 local producers, but imported building materials are increasingly being used. This is especially evident in newer hotels and tourist
centers, and in the country's more affluent urban areas. Products used in tourism projects are primarily imported, as the Turkish government subsidizes the tourism sector by allowing materials to be imported duty
free. This allowance has increased the use of imported building by making them available at relatively competitive prices. The sector has low cost, low quality products as well as very high quality, high priced
materials. Affluent consumers demand higher priced, quality luxury products coupled with high quality construction. Most of these products are imported, with Italy being one of the major suppliers.
Prefabricated homes, doors, windows, bathroom and kitchen accessories, roofing and siding materials and specialty flooring materials from the U.S. have the best sales prospects. The market is especially open to
new and advanced design and engineered products. |
