Türkiye's construction cost index (CCI) increased by 29.84% year-on-year in May 2026, while rising 1.87% compared to the previous month, according to data released by the Turkish Statistical Institute (TurkStat) on Thursday.

The increase was driven by continued growth in both material and labor costs. On a monthly basis, the material index rose 1.77%, while the labor index climbed 2.04%. Compared with May 2025, material costs increased 28.62%, and labor costs advanced 32.00%, highlighting the persistent upward pressure on construction expenses.

The building construction cost index posted a 1.96% monthly increase and rose 28.56% annually in May.

Within the category, material costs increased 2.08% from the previous month, while labor costs rose 1.75%. On an annual basis, building material costs were up 26.93%, and labor costs increased 31.34%.

The data indicate that labor costs continued to outpace material prices, contributing significantly to the overall increase in construction expenses.

The construction cost index for civil engineering projects registered a stronger annual rise than building construction, increasing 34.06% compared with the same month last year.

On a monthly basis, the index rose 1.60%, with material costs increasing 0.85% and labor costs advancing 3.08%.

Year-on-year, civil engineering material costs climbed 33.91%, while labor costs increased 34.34%, reflecting sustained cost pressures across major infrastructure and engineering projects.

The latest figures suggest that construction costs in Türkiye continue to rise steadily despite moderating inflation in some sectors, with higher labor expenses remaining a key factor influencing both residential building and large-scale infrastructure projects. (ILKHA)