Construction industry grows 11 pct in 2011

Construction industry grows 11 pct in 2011

ANKARA - Anatolia News Agency
Construction industry grows 11 pct in 2011

Skyscrapers are seen rising over İzmir bay in the Aegean province. AA photo

The Turkish construction sector grew 11.2 percent in 2011, and the total value of new projects granted to Turkish building contractors abroad was $19.3 billion in the same period, according to data provided by an industry association.

Turkish contractors have undertaken 6,500 projects abroad in 94 countries as of last year, with a total value of $206 billion, according to a report issued by the Turkish Contractors’ Association (TMB) titled “Construction Industry Analysis.” 

Leading markets

About 44 percent of projects of Turkish contractors abroad were in Eurasia, 24.5 percent in the Middle East, and 19.73 percent in Africa. More than half of the new projects the Turkish contractors undertook were in four countries: Russia, Turkmenistan, Iraq, and Kazakhstan.

The Turkish construction industry grew 15.3 percent in the first quarter of 2011, dropping in the following quarters of the year and down to 7 percent growth in the last quarter. The industry’s overall annual growth was 11.2 percent.

Costs go up

“Data regarding construction licenses and occupancy permits shows a reluctance to start new construction and indicates a strong trend of depleting stocks,” and the construction industry may slow down significantly in 2012, the report said. 

The number of new construction licenses dropped by 30.8 percent last year, while occupancy permits increased by 23.4 percent. Building construction costs went up 12.41 percent last year compared to 2010.