Construction cost inflation accelerates in Türkiye

The monthly increase accelerated from 1.15% in July, while annual cost inflation climbed from 28.33% to 29.59%. A breakdown of cost components revealed that material prices increased by 2.73% on a monthly basis, while labor costs rose by 0.82%. Compared with the previous year, material costs increased by 28.72%, while labor costs surged by 31.20%. Labor costs therefore recorded the larger annual increase, while materials drove the monthly rise.

By construction type, the building construction cost index increased by 1.59% month-on-month and 28.94% year-on-year in August. Within building construction, material costs rose by 27.76% annually, while labor costs increased by 31.05%. Cost increases were even stronger in non-building construction, reaching 3.46% on a monthly basis and 31.68% annually. In this category, material costs jumped by 4.95% month-on-month, while labor costs rose by just 0.55%. The latest figures indicate that cost pressures persist across Türkiye's construction sector, with accelerating material prices potentially increasing expenses for new projects.