The Turkish Statistical Institute (TUIK) announced the construction cost index data for the December 2024 period. According to these data, there were significant increases in construction costs. The index increased by 2024% in December 0,7 compared to the previous month and by 34,27% compared to the same month of the previous year. These increases can be considered as a reflection of the difficulties faced by the construction sector.
Increases in Material and Labor Index
On a monthly basis, the material index increased by 0,41% and the labor index by 1,29%. On an annual basis, the material index increased by 26,18% and the labor index by 54,35%. These increases directly affect construction costs and have reached levels that will strain the budgets of projects in the construction sector. In particular, the annual 54,35% increase in labor costs shows that one of the most important cost items in the sector is rapidly increasing.
Building Construction and Exterior Structures
The building construction cost index increased by 2024% in December 0,66 compared to the previous month and by 34,67% compared to the same month of the previous year. For non-building structures, the construction cost index increased by 0,81% compared to the previous month and by 33% compared to the same month of the previous year. In particular, the increase in labor costs for non-building structures reached 57,92%, while the material index increased by 24,27%.
Construction cost index data announced as of December 2024 indicates that cost increases in the sector will continue. Increases in material and labor prices can make budgets for construction projects even more difficult. In this case, the construction sector may need to develop innovative solutions and turn to more efficient production methods to balance costs.
