Türkiye’s construction sector recorded a strong annual performance in August 2025, with production in construction increasing by 25.0% compared to the same month of the previous year, according to data released by the Turkish Statistical Institute (TurkStat) on Wednesday.

The construction production index showed notable improvements across all major subsectors, reflecting the sector’s continuing recovery momentum amid government-led infrastructure projects and private housing developments.

According to TurkStat’s statement, the construction of buildings index rose by 26.6% year-on-year in August 2025, while the civil engineering index recorded a 17.4% increase. The specialised construction activities index, which includes renovation, electrical, and finishing works, also climbed by 25.1% over the same period.

Analysts noted that the robust annual growth reflects a rebound in both public and private investment activity, particularly in urban transformation projects and transportation infrastructure.

On a monthly basis, however, the construction sector showed a modest slowdown. Total construction production decreased by 0.9% in August compared to the previous month.

In detail, the construction of buildings index fell by 1.5%, the specialised construction activities index slipped by 0.2%, while the civil engineering index — which includes roads, bridges, and energy facilities — increased by 1.5% month-on-month.

Economists interpret the monthly contraction as a seasonal adjustment, following strong output growth in early summer months, while the year-on-year performance continues to indicate resilience and expansion in Türkiye’s construction industry.

The construction sector remains a key driver of Türkiye’s economic activity, contributing significantly to employment and industrial output. With ongoing investments in housing, urban renewal, and infrastructure, experts expect the sector to maintain stable growth through the final quarter of 2025.

TurkStat’s data highlights that while short-term fluctuations persist, the overall trajectory of Türkiye’s construction production continues to point toward sustained recovery and structural strength within the broader economy. (ILKHA)