Higher building material prices pushed up construction prices in the second quarter

The construction price index expresses the change in construction expenditures at the level of direct costs on the construction site, which are divided into three basic groups: labour force, building machines, and building materials. The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings, and office buildings. The repair and reconstruction work price index covers office buildings.

Ülo Paulus, leading analyst at Statistics Estonia, pointed out that, both year on year and compared with the previous quarter, the rise in the second-quarter construction price index was most affected by the higher prices of materials dependent on imported raw materials. “Compared with the first quarter, a strong contribution to the price rise also came from the higher costs of using building machines, which together with the more expensive materials made up 90% of the total index increase. The military conflict on important trade routes is creating shortages both on the market for materials and for energy carriers,” said Paulus.

Compared with the second quarter of 2025, the cost of materials rose by 3.9%, the cost of using building machines by 1.8% and payroll expenses by 1.9%. The higher cost of materials contributed 76% of the rise in the construction price index.

In the second quarter of 2026, the repair and reconstruction work price index rose by 2.4% compared with the first quarter and by 3.1% compared with the second quarter of 2025.

Statistics Estonia collects and analyses data for the construction price index for the Ministry of Economic Affairs and Communications to understand how the Estonian economy is doing.

Data as at 22 July 2026 are published. The indicator values may change if there are any revisions made in the data sources after this date.

See also the prices section on our website. More detailed data have been published in the statistical database.

When using Statistics Estonia’s data and graphs, please indicate the source.

For further information:

Kai Kaljumäe
Communications Partner
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee (press[at]stat[dot]ee)

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