Construction costs rose by 69.98 percent year-on-year in March. The prominent factor in the rise in costs was the 108.04 percent increase in labor wages. It was noteworthy that the cost of materials increased by half that amount.
Turkish Statistical Institute (TurkStat) published the construction cost indices for March. While the report revealed the latest situation in construction costs in detail, significant increases in material and labor costs drew attention.
As of March, the construction cost index increased by 2.11 percent compared to the previous month and 69.98 percent compared to the same month of the previous year. The material index rose by 2.54 percent month-on-month and the labor index by 1.3 percent. On an annual basis, the materials index increased by 55.17 percent, while the labor index almost doubled to 108.04 percent.
A similar trend was observed in building construction. The building construction cost index increased by 2.14 percent in March compared to the previous month and by 68.44 percent compared to March last year. In this period, material index and labor index increased by 2.64 percent and 1.24 percent, respectively. Annual material and labor indices increased by 52.77 percent and 107.45 percent, respectively.
The construction cost index for non-building structures increased by 2.03 percent in March compared to the previous month and by 75.15 percent compared to the same month last year. On a monthly basis, the material index rose by 2.25 percent and the labor index by 1.54 percent. On an annual basis, the material index increased by 62.93 percent and the labor index by 110.27 percent.
These data underline the large increases in material and especially labor costs in Turkey’s construction sector. This high increase in construction costs may significantly affect price dynamics and cost management in the sector.
