Construction cost rising in double digits as house sales are sluggish

Higher inflation and weaker TL are taking their toll on Turkey’s construction sector.

In Turkey, house sales increased by 7.6% in September compared to the same month of the previous year to 147.143. İstanbul had the highest share with 19.2%.

Yet in January-September period, house sales decreased by 18.3% compared to the same period of the previous year to 949.138.

Mortgaged house sales decreased by 16.4% in September compared to the same month of the previous year with 20.2% share of all house sales. In January-September period, mortgaged house sales decreased by 64.3% yoy to 181.855.

Other house sales increased by 16.0% in September compared to the same month of the previous year as it had 79.8% share of all house sales. In January-September period, other house sales increased by 17.6% compared to the same period of the previous year to 767.283.

First time house sales increased by 6.3% in September with its 29.9% share of all house sales in Turkey. In January-September period, first time house sales decreased by 20.1% compared to the same period of the previous year to 287.156 units.

Second hand house sales increased by 8.2% in September compared to the same month of the previous year with a share of 70.1% of all house sales in Turkey. In January-September period, second hand house sales decreased by 17.5%.

Construction cost index increased by 42.13% annually 

In August 2021, construction cost index (CCI) increased by 0.93% compared with previous month and increased by 42.13% compared with the same month of the previous year.

  • On mom terms material index increased by 0.83% and labour index increased by 1.19%
  • On yoy terms material index increased by 51.94% and labour index increased by 21.54%