Türkiye’s construction cost index rises 38.93% annually in September

The rise reflects inflationary pressures in both material and labor costs across the construction sector.

The Material Cost Index climbed by 0.77% from the previous month and jumped 31.56% over the past year. Labor costs also surged, with the Labor Index increasing by 0.18% monthly and by 56.68% annually.

In the building construction category, costs rose 0.78% from the previous month and marked an annual increase of 40.59%. The material component within building construction increased by 1.14% in September alone, up 33.98% year-on-year. Labor costs in building construction increased by 0.09% month-to-month, and by a substantial 55.69% over the year.

In civil engineering, the Construction Cost Index rose by 33.73% compared to September 2023, though it showed a slight monthly decrease of 0.11%. Material costs for civil engineering projects dropped by 0.38% from the previous month but increased by 24.50% annually. Labor costs, however, continued to rise, with a 0.50% monthly gain and a significant 60.32% increase compared to the same month last year.

These rising costs highlight ongoing inflationary challenges in Türkiye’s construction sector, impacting both private and public projects. The data emphasizes the importance of planning and budgeting for future construction projects as material and labor prices continue to escalate. (ILKHA)