According to the results of the Türkiye İMSAD Monthly Sector Report for March 2024, production in the construction materials industry increased by 3.3% in January 2024 compared to the same period of the previous year. During the same period, production increased in 10 of the sub-sectors of the construction materials industry, while it decreased in 12 sub-sectors. The report predicts that despite the tightening policies applied in the economy in 2024, the construction sector is expected to grow by 5%, with urban transformation activities playing a significant role in this growth.
The Türkiye İMSAD Monthly Sector Report for March 2024 has been released. According to the report, which evaluates the results for the construction sector and the construction materials industry, the industry started 2024 with an increase in production. In January 2024, production in the construction materials industry rose by 3.3% compared to January of the previous year.
The report also highlights that production in the construction materials industry increased by 5.7% in 2023 compared to 2022. One of the key factors affecting the production in this industry was the construction sector's first growth of 7.8% in five years in 2023.
The Türkiye İMSAD report points out factors that will impact future growth, including urban transformation activities and strengthening efforts to prepare for earthquakes and disasters in all municipalities before local elections. It is emphasized that as the process of fulfilling these promises begins, municipalities will increase urban transformation activities to the extent their resources allow. Additionally, it is mentioned that the central government will also start implementing new programs for urban transformation. The report underscores that accelerated urban transformation activities are expected to contribute 1.5 percentage points to the growth of the construction sector in 2024.
122,000 Additional Housing Units to Be Built in the Earthquake Zone by the End of 2024
The report states that non-residential buildings, public buildings, and social facility constructions continue in the earthquake zone. By the end of March 2024, construction of 78,000 housing units (apartments) in the earthquake zone was completed, with an additional 122,000 housing units expected to be completed by the end of 2024. Although growth in public investments will be limited this year, the report indicates that ongoing and newly initiated priority projects will contribute 1.0 percentage point to the growth of the construction sector in 2024. It is noted that private sector construction activities will show limited growth due to tightening policies and high interest rates/costs.
Employment Increase to Continue
The Türkiye İMSAD Monthly Sector Report emphasizes that employment levels in the construction sector have increased. Employment in the construction sector saw a significant rise in 2023, reaching 1.78 million people in the second half of the year. Although employment levels, which remained high in the last quarter of 2023, declined in January 2024 due to seasonality, employment in January 2024 was still well above the levels of January 2023 and January 2022.
High Production Increases in Few Sub-Sectors
The Türkiye İMSAD report notes different production developments in sub-sectors in the first month of 2024. Production increased in 10 sub-sectors compared to January of the previous year, while it decreased in 12 sub-sectors. Similar trends observed in 2023 are expected to continue in 2024.
The report highlights that significant production increases occurred in a few sub-sectors. Production of construction glass increased by 22.9%, production of steel bars and profiles by 20.2%, production of steel construction products by 13.9%, and production of heating and cooling equipment by 10.9% in January 2024 compared to January of the previous year. However, the increase in cement production was limited to 1.2%.
The report also notes that the decline in production of ceramic products continued into the new year. In January, production of ceramic flooring materials decreased by 26.4%, and production of ceramic sanitary ware decreased by 23.8%. Production of bricks and tiles fell by 8.6%, production of steel radiators by 8.5%, and production of engineered wood flooring and other floor coverings by 8.3%.
