Construction prices grew by 17.8% last year
According to Statistics Estonia, in 2022, the construction price index increased by 17.8% compared with the average of 2021. In the fourth quarter of 2022, the construction price index increased by 1.9% compared with the third quarter of 2022. The rise in the index compared with the fourth quarter of 2021 was again record high at 16.1%.
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.
Ülo Paulus, leading analyst at Statistics Estonia, said that the rise in the construction price index in the fourth quarter of 2022 compared with the previous quarter was mainly due to the rising prices of materials, which accounted for a half of the total rise. “The higher cost of labour force contributed 30% and the increased cost of using building machines 20% of the rise in the index,” noted Paulus.
In the fourth quarter of 2022, the repair and reconstruction work price index rose by 2.0% compared with the third quarter. In 2022 as a whole, the index grew by 16.2% compared with the average of 2021 – labour force was 8.1% more expensive, the cost of using building machines rose by 10.1% and the costs of materials by 21.4%.
Change in the construction price index, 4th quarter 2022
|
|
3rd quarter 2022 – |
4th quarter 2021– |
|
TOTAL |
1.9 |
16.1 |
|
labour force |
1.9 |
8.3 |
|
building machines |
6.0 |
15.0 |
|
building materials |
1.6 |
20.4 |
|
Index of detached houses |
2.1 |
13.8 |
|
Index of blocks of flats |
1.2 |
17.8 |
|
Index of industrial buildings |
2.0 |
15.9 |
|
Index of office buildings |
2.2 |
14.9 |
Change in the repair and reconstruction work price index, 4th quarter 2022
|
|
3rd quarter 2022 – |
4th quarter 2021 – |
|
TOTAL |
2.0 |
15.5 |
|
labour force |
1.6 |
8.1 |
|
building machines |
5.0 |
13.8 |
|
building materials |
1.9 |
19.7 |
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.
For further information:
Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee