The latest published construction cost index shows continued pressure on the cost of new projects. In May 2026, the overall rate increased by 1.87% month-on-month and 29.84% year-on-year.
Materials and labor grow at different rates
According to TÜİK, the cost of materials increased by 1.77% over the month and by 28.62% over the year. Labor costs increased by 2.04% and 32% respectively. For building construction, the aggregate index rose 1.96% for the month and 28.56% for the year. In the segment of non-building structures, annual growth was even higher - 34.06%.
What does the index say about the price of a new building?
The index measures changes in resource costs, not the market price of an apartment. The developer can transfer the increase in cost to the buyer in full, partially or temporarily reduce the margin. The final price also depends on the land, financing, demand, project stage and sales strategy. Therefore, an increase in the index by 29.84% does not automatically mean that the price of each apartment will increase by the same percentage.
How to check an offer to an investor
If buying early, ask for technical specifications, construction schedule, permits and price revision terms. Compare the property with finished analogues in the same area and separately calculate the costs of finishing, furniture and commissioning. A developer's large discount may reflect not only a favorable promotion, but also the project's need for financing.
Repairs also require reserves
Rising costs of materials and labor affect not only new buildings. The buyer of a secondary home should get several estimates, fix the amount of work and make a reserve for unforeseen expenses. TÜİK's figures provide a useful general background, but actual estimates vary by city, quality of materials and complexity of the site.