Wednesday December 7 2022

Turkish contractors take up $30bn projects in 67 countries

17 January 2022 17:24 (UTC+04:00)
Turkish contractors take up $30bn projects in 67 countries

By News Center

Turkish contractors undertook projects worth $29.3 billion (384 projects) in 67 countries in 2021, the Turkish Contractors Association (TMB) has reported.

The association’s January 2022 Construction Sector Analysis Report underlined that despite the uncertainties caused by the pandemic, the projects undertaken by the construction industry abroad continued to increase.

Thus, the construction industry’s international project portfolio size has reached a total of $451.5 billion with 110,93 projects undertaken in 131 countries since its first opening to the foreign market with Libya in 1972.

Furthermore, the report noted the importance of increasing the number of the Turkish labor force employed in overseas projects from 35,000 to 100,000 after the pandemic. The report underlined the need for the development of rational and long-term strategies in the sector by pointing out the necessity of business model changes.

According to the report, there was limited growth in the construction sector in the first half of 2021 and short-term forecasts in the sector became very difficult due to financial difficulties.

It was noted that there may be disruptions in the public infrastructure and superstructure projects in the coming period due to the situation aggravated by cost increases. The high prices will make it difficult to provide affordable housing to those in need, the report added.

The report noted that housing ownership became more difficult for the middle and low-income segments, a “wait and see” trend was observed with the effect of the exchange rate, and the purchasing decisions were inevitably delayed due to the cost increases in housing.

The report drew attention to progress payments and long-term delays in the sector, requesting that "withholding tax and VAT withholding rates have been increased should be returned to their previous levels".

TMB President Erdal Eren touched upon the price difference regulation that contractors, which are carrying out public projects, have been waiting for a long time. He underlined that the prices of input materials that are mainly used in superstructure works have increased by 278 percent since May 2020.

According to the data of the Turkish Statistical Institute (TUIK), a total of 1,127,875 houses were sold in 166 districts with a population of more than 150,000 in 2021.

Esenyurt ranked first in first and second-hand housing sales. While the number of houses sold across the country decreased by 0.5 percent compared to the previous year, it increased by 2.4 percent (37,102) in Esenyurt. Some 2.5 out of every 100 houses that changed hands across Turkey were sold in Esenyurt.

Esenyurt was followed by Cankaya with 26,229 units, Kecioren with 23,170, Bursa Nilufer with 19,475 and Ankara Mamak with 18,358. Some 18,064 houses in Antalya Kepez, 16,930 in Etimesgut, 16,546 in Gaziantep Sehitkamil, 15,312 in Antalya Alanya and 15,225 in Konya Selcuklu have changed hands.


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