Türkiye’s construction spending surges 44 percent in 2025

ISTANBUL

Construction spending in Türkiye increased by 44 percent in 2025 compared to the previous year, reaching 9.09 trillion Turkish Liras ($197 billion), according to a report from the Turkish Construction Material Producers Association (İMSAD).

The report noted that the construction sector outperformed the overall growth rate of the Turkish economy, expanding by 10.8 percent in 2025. This performance positioned the sector as one of the leading contributors to the country’s gross domestic product (GDP), which grew by 3.6 percent during the same period, said the report. 

In the fourth quarter of last year, the sector recorded an 8.6 percent growth rate, while construction spending across the country rose by 38.6 percent to 2.38 trillion liras.

The report highlighted that project-based investments, mandatory expenditures, post-earthquake reconstruction activities and urban transformation projects provided significant support to the sector.

The report also pointed out that the slowdown observed in the final quarter reflected the increasing impact of financing costs and demand conditions as limiting factors on the sector.

The report further revealed that building permits issued in the first quarter of 2026 continued the strong upward trend observed in the last quarter of 2025. During this period, the number of building permits issued rose by 19.6 percent compared to the previous year, while the number of residential units increased by 37 percent and the total floor area grew by 26.1 percent.

This increase in building permit indicators signaled that the sector’s appetite for future project development remains robust.