Ankara: Trkiye's construction sector achieved a significant milestone in December 2025, with production rising by 7.5% on an annual basis. The construction output index reached an unprecedented level, as reported by the statistical office TurkStat.
According to Anadolu Agency, the construction output index, without calendar effects, reached its highest point at 151.2 in December 2025. When adjusted for calendar effects, the index recorded 150.4 points, marking the highest level since the data collection began in January 2022, representing a 7.5% increase. The index adjusted for both calendar and season effects stood at 129.1 points during the same period.
All sub-sector indexes of the construction production index in December 2025 also reached peak levels. The building construction index increased by 8.4%, the civil engineering index by 5.8%, and the specialized construction activities index by 5.5% year-on-year.
Ali Hepsen, a professor of business administration at Istanbul University, explained to Anadolu that the country's construction production had experienced volatility due to financing challenges, which had suppressed production in 2024. He emphasized the significance of reaching a peak level like 150.4 points, noting that the acceleration in construction activities had been evident since the second half of the previous year.
Hepsen highlighted that the 8.4% rise in the building construction index indicates housing remains a key driver for the sector. The rise in non-building construction, referred to as the civil engineering index by TurkStat, reflects public investment support. The increase in specialized construction activities suggests that the supply chain is functioning effectively.
Hepsen stated that these developments indicate a "normalization rather than a new leap," noting that the slowdown in 2024 was offset in 2025. He mentioned that the reduction in cost uncertainty had accelerated the completion of unfinished projects. However, Hepsen cautioned that production and financial resilience are distinct, emphasizing the need to differentiate between them.
Looking ahead, Hepsen expressed that maintaining this momentum into 2026 would be challenging, as the rise was primarily driven by the completion of delayed projects. The continuation of this momentum hinges on the initiation of new projects, which require financing. He noted that contractors are now more selective in starting new projects due to slow sales in certain price segments but added that no scenario is likely to completely stall the sector.
Mustafa Ekiz, head of the Real Estate and Construction Platform, reiterated to Anadolu that the rise in the index demonstrates the sector's role as a key driver of the economy. He emphasized the strong housing demand and predicted that construction production activity would continue, albeit at a more measured pace. Ekiz also noted that access to financing, land costs, and credit conditions will be crucial in determining the sector's pace this year.
Ekiz stressed that the sector contributes to employment and stimulates related sectors while shaping the future of cities. He advocated for planned production, appropriate financing models, and a quality urbanization approach for sustainable growth.