In September 2024, construction costs in Türkiye surged once again, reflecting the ongoing trend of rising expenses in the building sector. According to the latest data from the Turkish Statistical Institute (TÜİK), construction costs rose 2.6% from the previous month and have climbed a striking 45% over the past year. This upward pressure, driven by material and labor cost increases, is reshaping real estate prices across Türkiye, particularly in popular regions like Antalya.
Key Drivers Behind the Cost Surge
- Material Costs: Material expenses saw an annual rise of 50.6%, influenced by inflation, global supply chain issues, and high demand. These factors are keeping essential building materials at elevated prices.
- Labor Costs: Labor costs rose by 26.7% year-over-year, reflecting both wage increases and a growing demand for skilled workers within Türkiye’s thriving construction industry.
How Rising Construction Costs Impact Property Prices
As construction costs rise, property prices are expected to follow, especially in highly desirable locations like Antalya. For buyers and investors, this trend highlights the advantage of securing property sooner rather than later. Rising costs may challenge new developments, but they also boost the value of existing properties, creating prime opportunities for early investors.
Monthly Material and Labor Cost Breakdown
The chart below offers a breakdown of the monthly increases in material and labor costs throughout 2024, illustrating the steady rise in these key components:
Broad Overview of Monthly Cost Increases by Category
The following heatmap provides a visual summary of monthly increases across various categories—including overall, material, labor, residential, and non-residential costs. Darker shades signify the highest increases, highlighting peak months in 2024:
Why Antalya Remains a Smart Choice for Investment
Despite rising construction costs in Türkiye, Antalya remains a resilient and attractive destination for property investment. Its unique combination of excellent climate, vibrant lifestyle, and tourism appeal makes it an ideal choice even in a shifting market. At Northpick, we help clients navigate these changes with expertise, providing options that align with financial goals and lifestyle needs.
Northpick’s Role in Supporting Investors Amid Cost Increases
For those looking at Türkiye’s real estate, these rising costs serve as a reminder of the urgency of timely investments. Northpick’s advisors are ready to guide you through opportunities that align with your financial objectives, even as construction costs climb.
