Output in Türkiye's construction sector surged 7.5% on an annual basis as of December last year, and the construction index saw its record high, according to data from the country's statistical office compiled by Anadolu Agency (AA) on Monday.

Türkiye’s construction output index, without calendar effects, rose to its highest at 151.2 points in December 2025, the data showed.

The index reached 150.4 points when adjusted for calendar effects, the highest since January 2022, when the data began to be collected, up 7.5%.

The index, adjusted for both calendar and season effects, totaled 129.1 points at the same time.

Meanwhile, all sub-sector indices of the construction production index in December 2025 reached peak highs.

The building construction index rose 8.4%, the civil engineering index 5.8%, and the specialized construction activities index 5.5% year-over-year.

Construction in 2025 offsets 2024’s slowdown

Ali Hepşen, a professor of business administration at Istanbul University, told AA that the country’s construction production saw volatility for a long time, especially due to difficulties in financing, which suppressed production in 2024.

"However, 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.

He noted that the 8.4% rise in the building construction index reflects that housing remains the sector’s driver, while the rise in non-building construction, which Turkish Statistical Institute (TurkStat) calls the civil engineering index in its data, reflects the support from public investments. Meanwhile, specialized construction activities indicate that "the supply chain is working."

He said these developments point to a "normalization rather than a new leap."

"The slowdown in 2024 was offset in 2025,” he said. "The relative decrease in cost uncertainty accelerated unfinished projects."

"However, the data alone does not indicate demand health or predictability since production and financial resilience are not the same – it’s necessary to make this distinction," he added.

Hepşen said that extending this momentum into 2026 "would not be easy," and that the rise last year was led by the completion of delayed production, so the continuation of this momentum depends on the start of new projects, which require financing.

He mentioned that contractors are more selective than before when it comes to starting new projects due to slow sales in certain price segments, but "there is no scenario that could completely slow down the sector."

Urban transformation, earthquake-related projects

"Investments in earthquake-prone regions, urban transformation, and public projects may continue this year, but I don’t expect the same high momentum as last year, a more limited and balanced increase is the likely outcome this year, yet the peak of last year is still very important," he said.

"The sector likes confidence, so when the index rises, suppliers relax, and banks become less distant, but the volume growth alone doesn’t measure success, as sustainability will be determined by financing conditions and demand levels," he added.

Mustafa Ekiz, head of Turkish construction sector service provider Real Estate and Construction Platform, said that the rise in the index shows the sector "has once again assumed its role as the driver of the economy."

"The rise shows that the housing demand is strong," he said, noting that the construction production activity will continue into this year, "but the growth is expected to progress more steadily."

"Access to financing, land costs and credit conditions will determine the pace of the sector this year," he added.

Ekiz said the sector creates employment and stimulates related sectors, while shaping the future of cities.

"Planned production, appropriate financing models, and a quality urbanization approach are needed for sustainable growth," he said.