BMI View : O ur view that despite short-term headwinds , Turkey presents an attractive market for investors remains in play, although we note those assets which deliver lira denominated returns will face poor profitability due to the ongoing depreciation in the lira against the US dollar . Government guarantees should shore up investor confidence . H owever, we note there is potential for the sector to be tarnished if President Erdogan's growing grip on power is extended by constitutional amendment .
On the back of a strong project pipeline, we maintain a healthy construction industry real growth outlook. Average real construction industry growth for the period 2015-2024 is forecast at 4.6%.
Key Forecasts And Developments
Major projects have entered the construction phase and will continue to support our growth forecasts over coming years. Construction has started on Istanbul's third airport and bridge across the Bosphorus. Our positive outlook for the Turkish infrastructure sector has been further buoyed by the announcement of a third tunnel to be built under the Bosphorus Strait. The Turkish Prime Minister Ahmet Davutoglu announced the USD3.5bon project for a three-story, 6.5km undersea tunnel, which will connect the Asian and European sides of Istanbul with road and rail links.
Turkey's power privatisation scheme continues and in a number of cases, the private sector has also announced plans to invest in newly acquired assets and submitted proposals for new generation units. We forecast average real growth of 5.8% in the energy and utilities sectors between 2015 and 2024, with nuclear capacity also entering construction in 2015.
Residential And Non-Residential Building
Although our expectations for growth in the residential sector remain robust, the non-residential building sector will be hit by the devaluation in the lira and broader performance of the Turkish economy - we note forecast real growth in the residential and non-residential...
The Turkey Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Turkey Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Turkish infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Turkey to test other views - a key input for successful budgetary and planning in the Turkish infrastructure market.
- Target business opportunities and risks in the Turkish infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Turkey.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.