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Construction prices started to rise in the fourth quarter

News
Posted on 21. January 2021 8:00

According to Statistics Estonia, in 2020, the construction price index increased by 0.4% compared to the average of 2019. In the fourth quarter of 2020, compared to the third quarter, the construction price index rose by 0.4%, and compared to the fourth quarter of 2019, fell by 0.1%.

The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labour force, building materials and building machines. 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.

According to Ülo Paulus, analyst at Statistics Estonia, the rise in the construction price index in the fourth quarter of 2020, compared to third quarter, was mainly driven by an increase in the costs of materials. The upturn in the index was also supported by growth in wages and salaries. “Compared to the average of 2019, labour force was 0.1% more expensive in 2020, the cost of using building machines rose by 1.5% and the costs of materials by 0.5%,” added Paulus.

In the fourth quarter of 2020, compared to the third quarter, the repair and reconstruction work price index rose by 0.1%. Compared to the average of 2019, the index rose by 0.2% in 2020. While the cost of construction materials rose by 0.4%, labour costs and the cost of using building machines remained at the same level.

Change in the construction price index, 4th quarter 2020
  3rd quarter 2020 –
4th quarter 2020, %

4th quarter 2019 –
4th quarter 2020, %

TOTAL

0.4

-0.1

    labour force

0.2

-1.1

    building machines

-0.5

-0.4

    building materials

0.6

0.4

Index of detached houses

0.2

-0.5

Index of blocks of flats

0.8

0.3

Index of industrial buildings

0.2

-0.3

Index of office buildings

0.4

-0.1

Change in the repair and reconstruction work price index, 4th quarter 2020
  3rd quarter 2020 –
4th quarter 2020, %
4th quarter 2019–
4th quarter 2020, %;

TOTAL

0.1

-0.7

    labour force

0.1

-1.1

    building machines

-0.1

-3.2

    building materials

0.2

-0.1

 

Year-on-year change in the construction price index, 2010–2020

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.

See also the dedicated section on prices.

More detailed data have been published in the statistical database.

 

For further information:

Kadri Kütt
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181

Photo: Shutterstock

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