Construction output hits historic peak in September

Construction output hits historic peak in September

ANKARA
Construction output hits historic peak in September

Türkiye’s construction sector recorded a historic surge in September, with output reaching its highest level since official data collection began in 2017.

According to figures released by the Turkish Statistical Institute (TÜİK), overall construction production rose 29.9 percent compared to the same month last year, pushing the construction production index to unprecedented levels.

Breaking down the data, building construction led the surge with a 31.2 percent increase, while non-building construction rose 23.3 percent and private construction activities advanced 30.1 percent.

Professor Ali Hepşen of Istanbul University’s Faculty of Business highlighted that the sharp rise in building construction reflects strong momentum in housing projects, while the growth in non-building structures, though positive, remains less vigorous.

He also pointed out that the private sector is driving the expansion, rather than public projects.

Hepşen attributed much of the increase to post-earthquake reconstruction efforts, with some housing projects nearing completion and new phases being launched. He added that social housing initiatives by the Housing Development Administration of Türkiye (TOKİ) have also provided substantial support to production.

Despite the strong figures, Hepşen cautioned against assuming the sector has entered a sustained upward trend.

“In construction, such peaks can signal the start of a powerful growth cycle, but they can also precede a correction. The key lies in whether production is driven by demand, financing, or simply the necessity of completing projects,” he explained.

Hepşen stressed that if credit channels remain open, sales continue at a healthy pace and cash flow supports operations, the sector could build on this peak.