Cost of construction on the rise

by Editor

According to data from the Turkish Statistical Institute (TÜK), the building cost index increased by 6.5 percent in July compared to the previous month, increasing the annual increase from 107 percent in June to 115 percent.

Construction material and labour prices went up 1.3 percent and 28 percent for yearly increases of 127 percent and 84 percent, respectively.

In July, the building construction cost index increased by 7.1 percent over the previous month and by 111 percent over the corresponding period in the previous year.

Building materials cost climbed by 1.8 percent in July compared to June and by 121 percent from the corresponding month in 2021. Labor expenditures increased 84 percent annually and 28 percent monthly.

According to the most recent Central Bank data, prices for presidential properties increased 161% in June compared to the same month last year.

The residential property price index increased by 9% on a monthly basis, and by 47% on an annual basis in real terms.

When compared to the same month last year, the index for new and existing homes increased by 165 and 161 percent, respectively.

In July, the number of homes sold fell by 13% year over year to over 94,000 units. The fall in home sales in the month represented the first annual decline since August 2021, and experts attribute it to the inflated prices in the real estate market.

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