Contractors secure $9.2 bln in overseas projects in nine months

ISTANBUL

The Turkish construction industry has maintained its strong international presence, undertaking projects worth $9.2 billion abroad during the first nine months of this year, according to a report by the Turkish Contractors Association (TMB).

The report revealed that Turkish firms signed 128 new contracts in foreign markets over the period. Romania emerged as the leading destination with $4 billion in projects, followed by Iraq with $1 billion.

Despite global challenges such as geopolitical risks, rising costs and tighter financial conditions, the sector continued to demonstrate resilience. The report underlined that government-backed projects in Türkiye have played a stabilizing role, supporting both production and employment in the domestic market.

The analysis also highlighted structural difficulties faced by companies, particularly limited access to affordable financing. High mortgage rates have slowed private sector investment and led to the postponement of new housing projects.

According to data from the Turkish Statistical Institute (TÜİK), construction expenditures rose by 48.1 percent in nominal terms in the second quarter, reaching 2.29 trillion Turkish Liras, while real growth stood at 20.2 percent. This marked the 11th consecutive quarter of expansion for the sector.

However, the report cautioned that growth has been heavily reliant on public spending. Weak demand in the private sector and restrictive credit conditions for housing have raised concerns about the sustainability of this momentum.

Meanwhile, the real estate industry posted modest growth, with activities in the second quarter expanding by 2.6 percent, reflecting a subdued performance.