Türkiye's construction output hits record high in December 2025

2026-02-23 - 22:42

Türkiye's construction sector achieved record-high production in December 2025, with the construction output index rising 7.5% year-on-year to 151.2 points, according to data released Tuesday by the Turkish Statistical Institute (TurkStat). The calendar-adjusted index reached 150.4 points, the highest level since data collection began in January 2022, signaling a robust recovery from the previous year's slowdown. Subsector Performance All subsectors of the construction production index reached peak highs in December. Building construction led with an 8.4% annual increase, followed by civil engineering at 5.8% and specialized construction activities at 5.5%. The broad-based growth indicates strengthening across the entire construction ecosystem, from housing development to infrastructure projects and specialized contracting. Expert Analysis on the Recovery Professor Ali Hepsen of Istanbul University told Anadolu that the sector experienced volatility for an extended period, particularly due to financing difficulties that suppressed production in 2024. "Reaching a peak level like 150.4 points is important—the acceleration on construction sites has already been felt in the field since the second half of last year, and the data reflects that," he said. Hepsen noted that the building construction index surge reflects housing's continued role as the sector's driver, while civil engineering gains demonstrate public investment support, and specialized construction activity increases indicate a functioning supply chain. 2026 Outlook and Sustainability Hepsen characterized the record performance as "normalization rather than a new leap," explaining that "the slowdown in 2024 was offset in 2025" as reduced cost uncertainty accelerated unfinished projects. However, he cautioned that extending this momentum into 2026 "would not be easy," since last year's rise was led by completing delayed production. Sustained growth depends on new project starts requiring financing. Contractors have become more selective due to slow sales in certain price segments, though Hepsen sees "no scenario that could completely slow down the sector." Industry Perspective Mustafa Ekiz, head of the Real Estate and Construction Platform, told Anadolu the index rise demonstrates the sector "has once again assumed its role as the driver of the economy" with strong housing demand. He expects construction activity to continue in 2026, though "growth is expected to progress more steadily." Ekiz emphasized that "access to financing, land costs, and credit conditions will determine the pace" this year, adding that "planned production, appropriate financing models, and a quality urbanization approach are needed for sustainable growth" as the sector shapes the future of cities while creating employment and stimulating related industries.