Construction costs in Türkiye continued to climb in August 2025, with the Construction Cost Index (CCI) rising 22.82% year-on-year and 1.05% month-on-month, according to data released Friday by the Turkish Statistical Institute (TurkStat).

The latest figures highlight ongoing price pressures in both building materials and labor, despite signs of relative monthly stability compared with earlier in the year.

In August, the overall CCI increased 1.05% compared to July, while the material index rose 1.46% and the labour index edged up 0.28% month-on-month.

On an annual basis, material costs increased 19.17%, and labour costs surged 30.16%, reflecting persistent inflationary pressures in the construction sector.

The building construction cost index showed a 1.15% monthly rise and a 22.53% annual increase.

Within this category, the material index increased 1.67% compared to the previous month and 18.92% compared to the same period last year.

Meanwhile, the labour index rose 0.23% month-on-month and 29.54% year-on-year, indicating that labour expenses remain a major contributor to the overall cost increase.

For civil engineering projects, which include infrastructure and public works, the cost index increased 0.72% monthly and 23.75% annually.

Material costs were up 0.84% from the previous month and 19.94% from a year earlier, while labour costs increased 0.48% monthly and 32.37% annually.

Economists note that the persistent rise in construction costs continues to impact housing prices, infrastructure projects, and public tenders. The strong annual rise in labour costs, exceeding 30% across both building and civil engineering sectors, underscores ongoing wage pressures in Türkiye’s construction industry amid high inflation and increased demand for skilled workers.

TurkStat’s construction cost index is a key indicator reflecting changes in input prices across Türkiye’s construction sector, providing insights into both material and labour market dynamics shaping the industry’s overall performance. (ILKHA)