Business · Economy · 10 hrs ago
Turkey’s construction sector contracts after 14 quarters of growth
Turkey’s construction sector shrank 1.9% in the second quarter after 14 quarters of growth, according to Saint-Gobain executive Osman İlgen.
The sector had continued growing in the first quarter of 2026, but the latest decline may signal a period of adjustment after prolonged growth.
İlgen said high interest rates make investment decisions harder and put pressure on housing prices.
Fewer new building permits suggest fewer new projects may replace completed ones in the coming period.
He said construction can recover quickly if market conditions improve, and sees potential for construction chemicals to perform better than the wider sector.
Saint-Gobain’s construction chemicals business includes products for cement and concrete, and Turkey’s strong cement production supports the field.
İlgen said the company aims to increase exports, with Azerbaijan, Georgia, the Caucasus, the Mediterranean and Central Asia among its priority markets.
Turkey’s construction sector contracted by 1.9% in the second quarter after growing for 14 consecutive quarters.
The sector had continued to grow in the first quarter of 2026, according to Saint-Gobain executive Osman İlgen.
Ilgen said high interest rates are making investment decisions harder and putting pressure on housing prices.
He said fewer new building permits could mean fewer projects replacing those being completed.
Ilgen described the contraction as a possible balancing process and said the sector has the capacity to recover quickly.
- Who
- Turkey’s construction sector, as described by Saint-Gobain executive Osman İlgen.
- What
- The sector contracted by 1.9% in the second quarter after 14 quarters of growth.
- When
- The contraction was in the second quarter of 2026.
- Where
- Turkey.
- Why
- İlgen said high interest rates make investment decisions harder. He also pointed to fewer new building permits as a sign of a possible slowdown in future projects.
This story does not have two clearly opposing sides.
Turkey’s construction sector recorded growth.
The sector’s growth continued.
The sector contracted by 1.9%.
Osman İlgen discussed the sector with Bloomberg HT.
- Sector contraction
- 1.9% in the second quarter
- Prior growth
- 14 consecutive quarters
- Executive
- Osman İlgen
- Company
- Saint-Gobain
- Article publication
- October 17, 2026
What people are saying
the contraction seen in the second quarter after a long period of growth in the construction sector may point to a balancing process
the construction sector has the capacity to recover quickly
a limited improvement in market conditions could support a recovery in the sector