Construction costs in Türkiye continued to climb sharply in December 2025, with the overall Construction Cost Index (CCI) rising 24.50% year-on-year and 1.17% month-on-month, according to data released Tuesday by the Turkish Statistical Institute (TurkStat).

TurkStat said the monthly increase was driven by higher expenses in both materials and labour. The material cost index rose 1.22% in December compared with November, while the labour cost index increased 1.06% over the same period. On an annual basis, material costs were up 21.47%, while labour costs surged by 30.67%, highlighting continued pressure from wages and workforce-related expenses.

Within the broader index, the building construction cost index recorded a stronger monthly increase, rising 1.52% in December and 24.55% compared with the same month of the previous year.

According to TurkStat, material costs for building construction increased 1.79% month-on-month, while labour costs rose 1.01%. Annually, the material index climbed 21.70%, and the labour index increased 30.16%, reinforcing the trend of labour costs growing faster than material prices.

In contrast, construction costs in civil engineering projects showed only a marginal monthly rise. The civil engineering construction cost index increased by just 0.03% in December, though it still posted a substantial 24.37% annual increase.

On a monthly basis, the material index for civil engineering declined by 0.53%, while labour costs rose 1.20%. Year-on-year figures showed material costs up 20.75% and labour costs up 32.51%, marking the highest labour cost increase among the main construction categories.

The latest data underline that labour costs continue to be the main driver of construction inflation in Türkiye, outpacing material price increases across all segments. Economists note that sustained rises in construction costs are likely to affect housing prices, infrastructure budgets, and public investment planning in the coming months.

TurkStat’s December figures close out 2025 with construction costs remaining at elevated levels, reflecting ongoing inflationary pressures in the sector despite signs of monthly moderation in some subcategories. (ILKHA)