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In June 2025, Turkey's construction industry operated amidst a combination of slowing growth in building material costs and macroeconomic pressures. Data from the Turkish Statistical Institute (TUKIST) showed that the construction cost index rose 23.58% year-on-year in June, the lowest annual increase since October 2020 (19.49%) and significantly lower than the 72.78% increase in May 2024. NK K/F36 steel Specifically, building material costs rose 19.37% year-on-year, with labor costs increasing even more significantly, reaching 31.99%. Month-on-month, the overall construction cost index rose 1.37% from May, with material costs increasing 2.35% and labor costs decreasing slightly by 0.35%.
Weaker steel prices provided some relief to the construction industry. In June, domestic rebar prices in Turkey were $542-560/ton ex-work, down $52.5/ton year-on-year; wire rod prices were $550-560/ton ex-work, down $40/ton year-on-year; and section and commercial profile prices were $600-630/ton ex-work, down $15/ton year-on-year. NK K/F36 steel Compared to May, rebar prices fell slightly by $5/ton, wire rod prices remained flat, and section and commercial profile prices rose by $7.5/ton.
Despite slowing cost growth, high inflation and the depreciation of the lira remain major challenges for the industry. NK K/F36 steel In June 2025, the lira depreciated by approximately 21.2% against the US dollar compared to the same period last year and 1.7% from May, reaching 39.49 lira per dollar. During the same period, the annual inflation rate rose to 35.05%, an increase of 1.37 percentage points from May.
