Two-year peak in construction costs

Turkey's construction cost index rose 30.80% year-on-year in September, the fastest annual increase since December 2024, according to data released by the Turkish Statistical Institute (TÜİK). Costs climbed 1.81% month-on-month, driven by higher material prices, while labor costs posted a limited decline. The acceleration in construction costs matters because it feeds through to building expenses, contractor margins and ultimately housing prices in a market already sensitive to inflation. Investors will watch whether material price pressures persist in coming months and whether the limited easing in labor costs is sustained.