Brief information about Turkish construction industry by 2014 including number of shopping malls, office buildings, house sales and major companies

1. Foreign Market Consulting Ltd. Sti.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com
Istanbul
June 2014
Construction Industry in Turkey

2. Contents
A Overview Page 03
B Supply Page 05
C Growth Page 10
D Demand Page 11
E Main Companies Page 12
© 2014 Foreign Market Consulting Ltd. Sti.

3. 3
A. Overview
One of the Main Drivers of the Turkish Economy
• Construction GDP of EUR 27.3 bn in 2013. (Source: Turkish Statistical Institute, 2014)
• Nearly 174 thousand construction companies, most of them being SMEs. (Source: Social
Security Institution, 2014)
• More than 1.7 mn employees. (Source: Social Security Institution, 2014)
• USD 2.5 bn FDI inflow to the construction industry btw. 2009 and 2013. (Source: Central
Bank of the Republic of Turkey, 2014)
• 5,532 foreign companies are active in construction and real estate industry in 2013.
(Source: Ministry of Economy, 2014)
• Real estate purchases of foreigners continuously increased: USD 2 bn in 2011, USD
2.6 bn in 2012 and USD 3 bn in 2013. (Source: IMSAD and Ministry of Economy, 2014)

4. 4
A. Overview
Residential Projects Lead the Growth
• Urban renewal projects will include the renovation of 6.5 mn residences which will
require a budget of USD 400 bn. (Source: Investment Support and Promotion Agency, 2013)
• Residential projects have the largest share in construction output in Turkey.
Construction Output in Turkey
EUR mn 2008 2009 2010 2011 CAGR* Share 2011
Residential 25,504 20,256 24,408 28,688 4.0% 56%
Civil engineering 12,166 12,458 14,894 14,355 5.7% 28%
Other 8,719 6,881 7,684 8,456 -1.0% 16%
Total 46,389 39,595 46,986 51,499 3.5% 100%
*Compound annual growth rate btw. 2008 – 2011.
Source: Buildecon, 2014

5. 5
B. Supply
Production: Housing
• 116,525 buildings given construction permits in 2013, increased by 12%.
Construction Permits* Occupancy Permits**
2011
Number of Buildings 101,900 98,339
Area (sqm) 123,621,864 105,650,512
Value (TRY mn) 80,756 66,954
Number of Dwelling Units 650,127 556,769
2012
Number of Buildings 104,151 94,750
Area (sqm) 152,952,913 103,877,581
Value (TRY mn) 104,965 69,053
Number of Dwelling Units 750,922 546,672
2013
Number of Buildings 116,525 117,619
Area (sqm) 168,207,842 133,264,078
Value (TRY mn)*** 121,339 94,316
Number of Dwelling Units 814,031 698,571
2013/2012 %
Number of Buildings 12% 24%
Area (sqm) 10% 28%
Value (TRY mn) 16% 37%
Number of Dwelling Units 8% 28%
*Permits given to buildings before the construction
**Permits given to buildings after the construction is partly or wholly completed
***EUR 1 = TRY 2.528 in 2013
Source: Turkish Statistical Institute, 2014

6. 6
B. Supply
Production: Shopping Malls
• Continuous increase in the total number of shopping malls.
Year Number of
Shopping Malls
Opened
Change Total Number of
Shopping Malls
Change
2009 24 238
2010 23 -4% 261 10%
2011 36 57% 298 14%
2012 20 -44% 318 7%
Source: The Association of Real Estate Investment Companies (GYODER), 2014

7. 7
B. Supply
Production: Offices
• Steady increase in the construction of office buildings.
Permits Given for Office Buildings Construction Permits* Occupancy Permits**
2011
Number of Buildings 1,811 1,251
Area (sqm) 4,823,020 3,181,956
Value (TRY mn) 3,148 1,966
Number of Dwelling Units 277 108
2012
Number of Buildings 1,900 1,483
Area (sqm) 6,242,502 3,645,361
Value (TRY mn) 4,276 2,396
Number of Dwelling Units 746 377
2013
Number of Buildings 2,538 1,824
Area (sqm) 6,764,406 4,280,829
Value (TRY mn)*** 4,858 2,984
Number of Dwelling Units 721 320
2013/2012 %
Number of Buildings 34% 23%
Area (sqm) 8% 17%
Value (TRY mn) 14% 25%
Number of Dwelling Units -3% -15%
*Permits given to buildings before the construction
**Permits given to buildings after the construction is partly or wholly completed
***EUR 1 = TRY 2.528 in 2013
Source: Turkish Statistical Institute, 2014

8. 8
B. Supply
International Projects
• Turkish companies have been active in 100 countries, particularly in the CIS
countries, Middle East and North Africa. (Source: Turkish Contractors Association, 2013)
• Total international project volume btw. 1972 – 2013 is USD 242.5 bn. (Source: Turkish
Contractors Association, 2013)
• International projects include roads, bridges, tunnels, housing, airports, touristic
centers, railways, sport centers, plants, power plants, commercial centers and
hospitals.
2.57
4.49
11.37
Turkish International Contracting Services (USD bn)
12.38
35
30
25
20
15
10
5
Source: IMSAD and Ministry of Economy, 2014
24.06
25.26 24.83
21.66
23.07
20.49
29.43
31.31
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

9. 9
B. Supply
Production: Construction Materials
• One of the 12 largest manufacturers in the world in cement, glass, steel and
ceramics. (Source: Turkish Contractors Association, 2013)
• Main construction materials produced domestically are:
• Steel
• Cement
• Ceramics
• Glass
• Insulation materials
• Plastic materials
• Pipes
• Precasts
• Roofing and siding materials
• Aluminum materials
• Marble
• Dye
• Wooden products
• Construction material exports volume was USD 21.3 bn in 2013 and imports volume
was USD 10.4 bn. (Source: IMSAD and Turkish Statistical Institute, 2014)

10. 10
C. Growth
Growth
• The construction industry grew by 7.1% in 2013.
13.9%
7.8%
14.1%
9.3%
18.5%
5.7%
-8.1%
-16.1%
18.3%
11.5%
0.6%
7.1%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
Growth Rate of the Construction Industry
Source: Turkish Statistical Institute, 2014

11. 11
D. Demand
House Sales
427105
555184
Number of Houses Sold
607098
708275 701621
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Mortgaged sales included.
*2013 data includes all Turkey. In the data of 2008-2012, only province centers and center districts are included .
Source: Turkish Statistics Institute, 2014
TRY billion Housing Loans
60.8
65.4
70.8 72.8 74.6 75.4 78.4 81.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
Source: GYODER and the Central Bank of the Republic of Turkey, 2012
1157190
86.0
0.0
2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4
0
2008 2009 2010 2011 2012 2013*

12. 12
E. Main Companies
State Institutions and Private Companies
• Two important state enterprises:
• TOKI, the Housing Development Administration
• Produced 621,802 residences throughout Turkey btw. 2002 and 2014. (Source: TOKI, 2014)
• Plans to increase this figure up to 1 mn residences in 2023. (Source: Investment Support and Promotion
Agency, 2013)
• KIPTAS, the housing enterprise of the Istanbul Metropolitan Municipality, has produced
63,000 residences in Istanbul since its establishment in 1995. (Source: Kiptas, 2014)
Company Net Sales (TRY mn, 2012)*
• Internationally competitive private companies:
ENKA Insaat 10,297.5
IC Ictas Insaat 2,631.3
Tekfen Insaat 2,512.9
Akdeniz Insaat 1,911.3
Polimeks Insaat 1,757.0
Yuksel Insaat 1,166.6
TAV Tepe Akfen 1,003.8
Limak Insaat 715.8
Hazinedaroglu – Ozkan Insaat 701.8
Metag Insaat 486.7
*EUR 1 = TRY 2.31 in 2012
Source: Fortune, 2013

13. 13
• 38 Turkish contracting companies in the “Top 250 International Contractors” list of
ENR in 2013, where Turkey ranks second in the world after China.
• Renaissance Construction
• Enka Construction & Industry
• Tekfen Construction and Installation
• Polimeks Insaat
• ANT YAPI Industry & Trade
• TAV Construction
• Calik Enerji
• GAMA
• Yuksel Insaat
• Cengiz Construction
• IC Ictas
• Onur Taahhut
• Atlas Group
• MAPA Insaat
• Nata Construction
• Yapi Merkezi
• Kayi Insaat
• Kontek Construction
• Alarko Contracting
• Limak Insaat
• Eser Contracting
• Tepe Insaat
• Aslan Yapi
• Metag Insaat
• Rasen Insaat
• Summa Turizm Yatirimciligi
• Hazinedaroglu Construction
• TACA Construction
• Dogus Insaat
• Nurol Construction
• Dorce Prefab.
• Yenigun Construction
• Lotus Muteahhitlik
• MAKYOL Construction
• GAP Insaat Yatirim
• STFA Construction
• Kolin Insaat
• Gurbag Group
E. Main Companies
ENR List

14. Confidentiality
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information to be handled confidentially, especially regarding the sources used.
Liability
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customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com