The rise in construction prices in the first quarter was held back by lower costs for materials and machinery

News
Posted on 23 April 2024, 8:00

According to Statistics Estonia, in the first quarter of 2024, the construction price index increased by 0.2% compared with the fourth quarter of 2023 and by 0.9% compared with the first quarter of last year.

Ülo Paulus, leading analyst at Statistics Estonia, said that in the first quarter of this year, compared with the same period in 2023, the construction price index was primarily influenced by the increase in wages of workers, which accounted for 58% of the index change. “Compared with the fourth quarter of last year, labour force was 2.6% more expensive, while the price of building materials fell by 1% and the cost of using building machines by 0.8%,” Paulus noted. The biggest contributors to the correction in input prices were manufacturers of concrete products and large equipment rental companies.

The repair and reconstruction work price index fell by 0.2% compared with the fourth quarter of 2023 and by 0.1% compared with the first quarter of last year.

Change in the construction price index, 1st quarter 2024

 

4th quarter 2023 –
1st quarter 2024, %

1st quarter 2023 –
1st quarter 2024, %

TOTAL

0.2

0.9

   labour force

2.6

6.5

   building machines

-0.8

0.8

   building materials

-1.0

-0.2

Index of detached houses

1.1

2.1

Index of blocks of flats

0.7

1.3

Index of industrial buildings

-0.6

-0.1

Index of office buildings

0.3

0.6

Change in the repair and reconstruction work price index, 1st quarter 2024

 

4th quarter 2023 – 
1st quarter 2024, %

1st quarter 2023 –
1st quarter 2024, %

TOTAL

-0.2

-0.1

 

   labour force

0.3

3.4

 

   building machines

-3.3

-1.3

 

   building materials

-0.3

-2.0

 

Quarterly change in the construction price index and its components compared to previous quarter, 2020–2024

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 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:

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

Foto: Shutterstock

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