The Turkish Statistical Institute (TÜİK) announced the construction cost table for March. According to the data, the construction cost index increased by 1.53% in March compared to the previous month and by 23.23% on an annual basis. This means that on an annualized basis, the cost of construction fell to the lowest level in nearly four years.
Increase in Material and Labor Indices
On a monthly basis, the material index increased by 1.95% and the calendar index by 0.8%. On an annual basis, the statistical index increased by 18.8% and the calendar index by 31.72%. These data reveal that cost increases in the construction sector continued, but the annual increase showed a significant decline compared to previous years.
Building Construction Cost Index Increased
The cost of building construction increased by 1.45% in March compared to the previous month and by 23.6% compared to the same month of the previous year. Compared to the previous month, the component index increased by 2% and the calendar index by 0.54%. On an annual basis, the statistical index increased by 19.68% and the calendar index by 30.77%.
Cost Increase for Non-Building Structures
Construction costs for non-building structures increased by 1.79% in March compared to the previous month and by 22.05% compared to the same month of the previous year. In this category, 1.82% of the layer and 1.74% of the calendar increased compared to the previous month. Compared to the same month of the previous year, the calendar of the material increased by 16.14% and the calendar of the material increased by 35.22%.
Conclusion
Construction cost data show that cost pressures in the sector continue, with increases in March, but a marked slowdown in the annual increase. The increase in labor and material costs in particular continues to be an important factor in paying investors and construction firms in the sector.
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