Higher cost of materials had the biggest impact on the rise in construction prices last year

News
Posted on 23 January 2024, 8:00

According to Statistics Estonia, in 2023, the construction price index increased by 6.1% compared with the average of 2022. In the fourth quarter of last year, the construction price index increased by 0.9% compared with the third quarter. The index increased by 2.2% compared with the fourth quarter of 2022.

Ülo Paulus, leading analyst at Statistics Estonia, said that the construction price index rose by 6.1% in 2023 compared with the average of 2022. The cost of labour force increased by 7.0%, the cost of using building machines by 9.8%, and the cost of materials by 5.2%. “The increasing cost of materials was the biggest driver of the rise in the construction price index, accounting for 52% of the total index rise,” noted Paulus.

Year-on-year change in the construction price index, 2010–2023

Compared with the fourth quarter of 2022, the construction price index rose by 2.2% in the fourth quarter of 2023. Labour force was 5.6% more expensive, the cost of using building machines rose by 3.8% and the cost of materials by 0.3%.

Quarterly change in the construction price index and its components compared to previous quarter, 2019–2023

In the fourth quarter of 2023, the repair and reconstruction work price index fell by 0.3% compared with the third quarter, and increased by 1.4% compared with the fourth quarter of 2022.

Change in the construction price index, 4th quarter 2023

 

3rd quarter 2023 –
4th quarter 2023, %

4th quarter 2022 –
4th quarter 2023, %

TOTAL

0.9

2.2

   labour force

1.5

5.6

   building machines

0.1

3.8

   building materials

0.7

0.3

Index of detached houses

1.2

2.7

Index of blocks of flats

1.2

1.8

Index of industrial buildings

0.1

2.4

Index of office buildings

0.9

1.5

Change in the repair and reconstruction work price index, 4th quarter 2023

 

3rd quarter 2023–
4th quarter 2023, %

4th quarter 2022 –
4th quarter 2023, %

TOTAL

-0.3

1.4

   labour force

1.3

5.1

   building machines

2.2

3.8

   building materials

-1.2

-0.8


The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: 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.
 

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.

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

 

For further information:

Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee

Photo: Shutterstock

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