Construction costs in Türkiye rose 29.59% in August 2026 compared with the same month a year earlier, according to the Construction Cost Index published by the Turkish Statistical Institute (TurkStat) on Oct. 9.
On a monthly basis, the index increased by 2.04%. Material costs were the main driver during the month, rising 2.73% from July, while labour costs increased 0.82%. Over 12 months, material costs were up 28.72% and labour costs 31.20%.
Residential and other buildings
For building construction, the category that covers housing as well as offices and other structures, costs rose 1.59% month-on-month and 28.94% year-on-year. Within this group, material costs increased 2.00% in the month and 27.76% over the year, while labour costs were up 0.89% monthly and 31.05% annually.
Costs for non-building structures, such as roads, bridges and other civil engineering works, rose faster. This category recorded a 3.46% monthly increase and a 31.68% annual rise, with material costs jumping 4.95% in August alone.
Comparison with prices and inflation
The annual increase in building construction costs was broadly in line with consumer inflation, which stood at 31.51% in August, and above the 23% annual rise in house prices recorded by the central bank's House Price Index for the same month.
Builders' costs are closely watched in Türkiye's housing market because they feed into the price of new homes and into large public programmes. These include the government's 500,000-unit social housing project, urban transformation schemes aimed at replacing earthquake-vulnerable buildings, and reconstruction in the 11 provinces hit by the February 2023 earthquakes.
The Construction Cost Index measures changes in the costs of materials and labour used in construction and is published monthly by TurkStat with a lag of around two months.
Sources
Photo: Jwslubbock / CC BY-SA 4.0, via Wikimedia Commons
