Construction costs in Türkiye soar in January

Türkiye’s construction industry grappled with significant cost increases in January 2024, according to the latest data.

The construction cost index (CCI) surged by 15.70% on a monthly basis and a staggering 67.87% year-over-year.

Both material and labor costs played a major role in the CCI’s rise. Material costs rose by 5.13% compared to December 2023, while labor costs jumped by a much higher 41.95%.  Over the past year, material costs have climbed by 53.29%, while labor costs have skyrocketed by a concerning 103.46%.

The cost of building construction followed a similar pattern. The building construction cost index (BCCI) increased by 15.92% monthly and 66.90% annually. Material and labor costs within the building sector also exhibited substantial growth, mirroring the broader CCI trends.

Civil engineering projects experienced the highest annual cost increase among the three categories. The construction cost index for civil engineering rose by 14.99% monthly and a substantial 71.09% year-over-year. Similar to the other sectors, material costs grew by 6.06% monthly and 58.72% annually, while labor costs climbed by 40.50% monthly and a concerning 105.65% compared to January 2023.

These figures highlight a significant challenge for Türkiye’s construction industry. The dramatic rise in construction costs will likely impact ongoing projects and deter new ones, potentially affecting economic growth and development. (ILKHA)