The construction sector is one of the sectors with the highest sensitivity to economic developments. The construction sector which is the locomotive of the global economy has a growth potential that seems stable but it is sensitive to economic and political risks. Therefore, the fundamental changes in economic indicators in 2019 affected the sector significantly. The factors such as lack of confidence, insufficient demand, cost increases; high interest rates, insufficient legal framework have adversely affected the construction sector and continue to do so.

The global economic crisis due to Coronavirus pandemic has also had major outcomes for the construction sector. 2020startedamid global growth concerns. The recession in the global economy continued to put downward pressure in the construction industry. The researches made indicate that the industry will not be able to return to its bright days in a short period of time.

According to official data, the construction industry shrank by an average of 9 percent from the second half of 2018 to the second half of 2019. In the January-October period, new house sales decreased by a record of 28.4 percent compared to the same period in 2018, while the second-hand house sales increased by 2.1 percent. In the same period, the house sales to foreigners increased by 18.9 percent compared to the same period in 2018.

The Coronavirus pandemic has had major influences on the construction sector. With the outbreak of Coronavirus, a significant downfall has been witnessed in the construction sector.  The sectorhas recently gone through a hard period due to the closure of construction sites and project cancellations.

Despite the measures taken in sales offices and construction sites to prevent the increase of the negative impact of the Coronavirus pandemic, a significant downfall in the construction sector has been evident on a global scale. The project cancellations and delays, and reduced real estate demands have made the sector receive a serious blow.

The construction industry has connections with more than 200 sub-sectors from cement to ready-mixed concrete, from brick to machinery, and the disruptions in the supply chain create another element of fragility. In addition, the cancellation of projects in the sector caused lots of employment losses. According to the data reached in European countries, the construction sector has faced a serious crisis in France, Italy, England and Germany due to the pandemic.

In terms of future prospects, it can be said that, the construction industry still maintains its high potential in almost all areas in the long term. However, there is a significant need of public support to overcome the short-term vulnerabilities. In the last months of 2020, it is expected that the dynamism in the sector will start with the new campaigns in house sales. Despite the stagnation in real estate sector, the projects in areas such as logistics and storage, hospitals, medical offices and laboratories are still in demand for the construction sector. As social distancing has become the new norm, it is stated that house projects with a wide landscape area and walking tracks will play a key role in shaping the decisions of the consumers.

With 30 years of experience, Hemstad offers its clients the best strategies for new opportunities in international markets with a cost-effective approach amid the crisis evident in various sectors.

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