Why Are Construction Costs Rising in Turkey?
Turkey’s construction sector has been experiencing a noticeable increase in costs due to several key factors:
Rising Steel Prices
Steel is one of the most critical components in construction costs. Any increase in the price per ton directly impacts the overall project cost. Due to global market fluctuations and growing industrial demand, prices are now significantly higher than in previous years.
Higher Cement and Energy Costs
Production expenses have increased because of rising energy and transportation costs. This has led to higher cement prices, ultimately affecting the entire structural construction cost.
Increasing Labor Wages
With growing demand for residential projects and infrastructure developments, skilled labor wages have increased, placing additional pressure on developers’ overall costs.
Why Won’t Prices Return to Previous Levels?
The real estate market does not easily move backward.
When production costs rise, it becomes difficult for developers to sell properties at old prices without incurring losses.
On the contrary:
- New projects are launched at higher price levels.
- Existing inventory gradually adjusts upward to match market conditions.
- Investors rush to purchase before the next wave of price increases.
In other words:
The new cost level becomes the new market baseline.
Is Buying Today Cheaper Than Tomorrow?
The economic logic is simple:
If construction costs are rising, future sale prices will rise as well.
Those who buy today benefit from:
- Lower prices compared to upcoming projects
- The opportunity to resell at higher values
- Protection of capital against inflation
This is where emerging cities such as Yalova become especially important. Property prices there remain more affordable than Istanbul, yet the city continues to grow thanks to its strategic location and increasing demand.
A Smart Investment Example
Investors who purchased before the 2022–2023 price surge
achieved significant gains in less than two years.
The question now is:
Will you wait until prices rise again?
Why Is Now an Opportunity?
- Current projects are still partially priced based on previous cost levels
- Some developers offer flexible installment plans
- Both domestic and international demand continue to grow
The rise in steel, cement, and labor costs is not temporary — it is a clear economic indicator.
History shows that real estate in Turkey tends to appreciate over the medium and long term.
Delaying your purchase may not save you money — it may cost you more.
Thinking About Investing?
At OmranTRK, we help you choose the right timing and location to achieve the best investment return in Yalova and other promising regions.
Contact us today for a free investment consultation.
Join The Discussion