Turkish construction costs rise 6.5 percent

The construction cost index rose by 6.5 percent in July from the previous month, bringing the annual increase from 107 percent in June to 115 percent, data from the Turkish Statistical Institute (TÜİK) have shown.

Construction material and labor costs were up 1.3 percent and 28 percent for annual increases of 127 percent and 84 percent, respectively.

The building construction cost index rose by 7.1 percent in July compared with the previous month and went up by 111 percent compared with the same month of the previous year.

The cost of materials used in the construction of buildings advanced by 1.8 percent in July from June and increased by 121 percent from the same month of 2021. Labor costs climbed 28 percent month-on-month and 84 percent year-on-year.

The latest data from the Central Bank showed that the presidential property prices leaped 161 percent in June from a year ago.

The monthly increase in the residential property price index was 9 percent, and the rise in the index in real terms was 47 percent year-on-year.

The index for new dwellings and existing dwellings rose by 165 percent and 161 percent in July compared with the same month of last year, respectively.

House sales plunged 13 percent year-on-year to around 94,000 units in July. Experts blame exorbitant prices in the property market for the decline in house sales in the month, which marked the first annual decline since August 2021.