The monthly increase in the construction cost index eased from 1.98 percent in August to 1.57 percent in September, the Turkish Statistical Institute (TÜİK) said on Nov. 10.
The annual rise in the index, consequently, accelerated from 117 percent to 119.8 percent.
Construction material costs were up 2.1 percent for an annual increase of 133.4 percent, while labor costs declined by 0.07 percent in September and the annual increase was 84 percent.
The building construction cost index rose by 2.1 percent month-on-month and went up by 117 percent compared with the same month of the previous year.
The cost of materials used in the construction of buildings advanced by 2.8 percent in September from August and increased by nearly 130 percent from September last year.
Labor costs were down 0.17 percent month-on-month but increased by 84 percent year-on-year.
The latest data from the Central Bank showed that residential property prices soared 184.6 percent in August from a year ago in nominal terms.
In real terms, the residential property price index grew by 57.2 percent, while the monthly increase in the RPPI was 8 percent.
The index for new dwellings and existing dwellings rose by 176.4 percent and 185.4 percent in August compared with the same month of last year, respectively.
House sales in Türkiye plunged 23 percent on an annual basis to 113,400 in September. Experts blame exorbitant prices in the property market for the decline in house sales in the month.
In the face of rocketing property prices and rents, the government has launched a massive social housing project to bring house prices under control.
Hurriyet Daily News