The Construction Sector Will Grow with Urban Transform

According to the March 2024 results of Turkey IMSAD Monthly Sector Report, construction material industry production increased by 3.3 percent in January 2024 compared to the same period of the previous year. Here is all the information in the report...

The results of the Monthly Sector Report prepared every month by the Turkish Construction Material Manufacturers Association (Turkey İMSAD) for 2024 have been announced. According to the report, which includes the results of the construction sector and construction material industry, the construction material industry started 2024 with an increase in production. Construction material industrial production in January 2024 increased by 3.3 percent compared to January of the previous year.
According to the news in Habertürk Newspaper; The report also underlines that construction material industry production in 2023 will increase by 5.7 percent to 2022; It was pointed out that many factors are effective in the construction material industry production. It was stated that the most important of these factors is that the construction industry will grow by 7.8 percent for the first time in 2023, after 5 years.
 
In the report underlining the factors that will affect growth in the coming period, Türkiye IMSAD report; It was noted that before the local elections, promises to prepare for earthquakes and disasters with urban transformation activities and strengthening works came to the fore in all municipalities. It was stated that with the start of the process of fulfilling the promises, municipalities will increase urban transformation works as much as their resources are sufficient. It was also underlined that the central government would begin to implement new programs for urban transformation, and it was stated that urban transformation activities, which are expected to accelerate in this context, could contribute 1.5 points of growth to the construction sector in 2024.
 
In the report, it was emphasized that the construction of non-residential buildings, public buildings and social facilities in the earthquake zone continues, and it was stated that the construction of 78 thousand houses (flats) in the earthquake zone was completed until the end of March 2024.
The construction of an additional 122 thousand residences (flats) is planned to be completed by the end of this year. Although the growth in public investments was limited this year, it was pointed out that public construction activities, with ongoing and new priority projects, will contribute 1.0 points to the growth of the construction sector in 2024. It was stated that in 2024, the residential and non-residential construction activities of the private sector will exhibit limited growth due to tightening policies and high interest rates/costs.
In the Türkiye İMSAD Monthly Sector Report, it was underlined that the employment level in the construction sector increased. The employment level in the construction industry has recorded a significant increase in 2023. In the second half of 2023, employment increased to 1.78 million people. Employment, which maintained its high level in the last quarter of 2023, decreased in January 2024 due to seasonality. However, the employment level in January 2024 was much higher than in January 2023 and 2022.
 
In the Türkiye İMSAD report, it was emphasized that there were different production developments in the sub-sectors in January 2024, and it was stated that production in 10 sub-sectors increased compared to January of last year, and production decreased in 12 sub-sectors. In 2023, different production trends occurred in sub-sectors. It was reported that the similar trend will continue in 2024.
According to the figures in the report, which points out that there have been high production increases in a few sub-sectors, construction glass production increased by 22.9 percent in January 2024 compared to January of the previous year, iron and steel rod and profile production increased by 20.2 percent, and iron and steel production increased by 20.2 percent in January 2024 compared to January of the previous year. Production of construction products increased by 13.9 percent and production of heating and cooling equipment increased by 10.9 percent. The increase in cement production was 1.2 percent.