Construction costs in Türkiye continued to rise in July 2026, according to data released by the Turkish Statistical Institute on September 9. The construction cost index increased by 1.15 percent from the previous month and by 28.33 percent compared with July 2025. The breakdown shows that both material and labor costs moved higher, although their annual rates differed.
Labor costs rose faster annually
Across the overall index, material costs increased by 1.28 percent month on month, while labor costs rose by 0.92 percent. On an annual basis, the material index was up 27.13 percent and the labor index increased by 30.51 percent. Labor therefore recorded a faster annual increase than materials in the July release.
The construction cost index tracks price changes in inputs used by the sector, primarily materials and labor. It does not directly measure the sale price of a home or the total price of an individual project. Land, financing, taxes, operating expenses and market conditions can also influence final prices. The index should therefore be read as a measure of production-side cost movements rather than a direct housing-price indicator.
Building construction costs increased 28.37 percent
The cost index for building construction rose by 1.08 percent from June and by 28.37 percent from a year earlier. Within this group, the material component increased by 1.21 percent on a monthly basis and labor by 0.86 percent. Compared with July 2025, building materials were 27.34 percent higher and labor costs were up 30.19 percent.
For non-building structures, the index increased by 1.38 percent month on month and 28.19 percent year on year. Material costs in this category rose by 1.49 percent from the previous month, while labor increased by 1.15 percent. On an annual basis, the corresponding changes were 26.50 percent for materials and 31.65 percent for labor.
The figures show a consistent feature across the main categories: annual labor-cost growth remained above 30 percent and exceeded the annual increase in materials. That comparison helps explain the composition of the headline figure, but it does not establish why each component changed. The statistical release reports the measured movement; separate evidence would be needed to attribute it to specific policy, wage, exchange-rate or supply factors.
How to read the release
Monthly and annual rates answer different questions. The monthly figure compares July with June 2026, while the annual figure compares July 2026 with July 2025. A single month can therefore show a moderate change even when the year-on-year rate remains high. Following the next releases will be important for determining whether the pace accelerates, slows or remains broadly stable.
The data provide a common reference for public institutions, construction companies and researchers monitoring input costs. July's main finding is that construction costs continued to rise across the overall, building and non-building indexes, with annual labor increases running above material increases. The release does not, by itself, provide a forecast for construction activity, housing supply or property prices, and it should not be treated as one. It is a measured index release, not a market projection.
