Construction Inflation Drops to Lowest Level Since 2021

The Construction Cost Index report published by the Turkish Statistical Institute for September 2024 revealed a significant increase in costs within the construction sector. According to the report, the construction cost index rose by 38.93% compared to the same period last year. On a monthly basis, the index recorded an increase of 0.57%.

When examining the material and labor indices, it was noted that the material index experienced a yearly increase of 31.56%, while the labor index saw a rise of 56.68%. In terms of monthly changes, the material index increased by 0.77%, and the labor index recorded a 0.18% rise. These data indicate that the cost increase is effective in both material and labor bases.

Rising Costs for Building Construction
The cost index for building constructions showed an annual increase of 40.59% in September 2024. On a monthly basis, this increase was at 0.78%. This suggests that cost pressures within the sector are persisting. Analyzing material and labor, the material index saw a monthly increase of 1.14% and an annual rise of 33.98%, whereas the labor index recorded a monthly increase of 0.09% and a yearly increase of 55.69%. The data indicates that the increasing costs for building constructions are primarily driven by labor expenses.

Decrease in Cost Index for Non-Building Structures
According to the report, the construction cost index for non-building structures saw a decrease of 0.11% compared to the previous month in September 2024. However, on an annual basis, there was an increase of 33.73% in this category. This situation suggests that although costs may decrease during certain periods, the overall trend remains upward.

For non-building structures, the material index decreased by 0.38% from the previous month, while the labor index rose by 0.50%. On a yearly basis, the material index increased by 24.50%, and the labor index surged by 60.32%. The data reveals that increasing labor costs for non-building structures are a primary reason behind the overall cost increase.