Analysts complain that the increase of the tax rate and the soaring currency will have a direct impact on the cost of work in the sector of building construction. According to the TÜİK, Turkish Statistical Institute (commonly known as TurkStat, the index of building costs of dwellings grew by 0.77% in May 2023 compared to the previous month - April - and by nearly half (49.97%) compared to the same month in 2022. By May 2022, the construction materials index is up 33.55% and the labor index is up 103.8%. As one might expect, the newly adopted tax rate growth will "add" considerably more to the expense of developing.
In the first half of this year, Turkish developers completed projects abroad worth $7.5 billion. Their services are highly sought after worldwide, with Saudi Arabia alone ordering projects worth billions of dollars. However, inside Turkey, the construction sector faces challenges that necessitate price adjustments, including state subsidies.