Construction sector drives Türkiye’s third-quarter growth

ISTANBUL

The construction sector emerged as the main driver of Türkiye’s economic growth in the third quarter, according to industry representatives, who pointed to momentum in housing production, urban transformation and infrastructure investments.

Data from the Turkish Statistical Institute (TÜİK) showed the economy expanded by 3.7 percent year-on-year in the July–September period of 2025, extending its growth streak to 21 consecutive quarters.

Construction grew by 13.9 percent, marking the highest sectoral increase.

Erdal Eren, president of the Turkish Contractors Association (TMB), emphasized that construction continued its positive growth for 12 consecutive quarters. “The sector’s performance reflects both the acceleration of reconstruction in earthquake-affected regions and rising investments in industry, energy and transportation,” he said.

Eren noted that geopolitical risks, high costs and tighter financial conditions have led to caution in global construction activity. He described the outlook as one of “cautious optimism.”

Breaking down the challenges, Eren explained: “The increase in production relies heavily on public projects, while private investments have not come into play at the same pace. This creates uncertainty about sustaining growth momentum in the long term.”

He added: “Weak demand has made the private sector more cautious and restrictive credit conditions are weighing on housing demand. These factors reinforce doubts about the sustainability of growth.”

Eren stressed that maintaining strong growth in construction will require stable financing conditions, the continuation of public projects and greater support for non-residential investments.