Türkiye’s construction sector is grappling with significant cost increases, as the Construction Cost Index (CCI) rose 23.58% year-on-year and 1.37% month-on-month in June 2025, according to data released by the Turkish Statistical Institute (TurkStat) on Monday.

The material index drove much of the monthly increase, climbing 2.35% from May 2025 and 19.37% compared to June 2024. Meanwhile, the labour index experienced a slight monthly dip of 0.35% but saw a sharp 31.99% annual rise, underscoring persistent wage pressures in the sector

Breaking down the subsectors, the Building Construction Cost Index grew by 23.21% year-on-year and 0.97% month-on-month. Building materials increased by 1.76% monthly and 19.06% annually, while labour costs fell marginally by 0.38% from May but soared 31.16% compared to the previous year.

Civil engineering projects faced even steeper cost hikes, with the Civil Engineering Construction Cost Index jumping 24.82% annually and 2.68% monthly. Material costs in this segment surged 4.19% month-on-month and 20.31% year-on-year, while labour costs, despite a minor 0.24% monthly decline, rose a striking 35.00% compared to June 2024.

The sustained rise in construction costs reflects ongoing inflationary challenges in Türkiye, fueled by escalating material prices and significant labour cost increases, posing concerns for the sector’s affordability and growth. (ILKHA)