BAKU, Azerbaijan, September 15. Türkiye's
construction costs increased at a lower annual rate than consumer
prices in July 2026, while labor costs in the sector recorded a
growth rate closer to overall inflation.
This was reported in a publication by the Turkish
Statistical Institute (TURKSTAT), compared with the consumer price
index (CPI) published separately by that agency.
According to TURKSTAT, the construction cost index increased by
28.33% year-on-year in July, compared with annual consumer price
inflation of 31.75% for the same month.
Trend's
calculations show that the overall construction cost index was 3.42
percentage points below annual CPI inflation in July. The
difference was mainly related to material costs, which increased
27.13% year-on-year, or 4.62 percentage points below consumer
inflation. At the same time, the construction sector's labor cost
index increased 30.51% annually, leaving a difference of 1.24
percentage points compared with CPI inflation, according to
Trend's
calculations.
A similar pattern was recorded in civil engineering. Trend's calculations reveal
that labor costs in the segment increased 31.65% year-on-year,
while material costs rose 26.50%. The difference between civil
engineering material cost growth and consumer inflation amounted to
5.25 percentage points. The comparison shows that labor-related
components of construction costs moved closer to overall inflation
than material-related components in July 2026.
For reference, TURKSTAT's construction cost index tracks changes
in material and labor costs across residential building
construction and civil engineering projects. The index provides
data on cost developments in the construction sector and is
published separately from consumer price statistics.
