Construction prices rose by 1.5% last year

News
Posted on 21 January 2026, 8:00

According to Statistics Estonia, the construction price index, which expresses the change in construction expenditures, increased by 1.5% in 2025 compared with the average of 2024. The rising cost of materials was the main reason for the increase in the construction price index.

Ülo Paulus. Photo: Statistics Estonia

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.

Ülo Paulus, leading analyst at Statistics Estonia, said that the increase in the construction price index in 2025, compared with the average of 2024, was primarily due to the rising prices of materials. “In 2025, the construction price index was up by 1.5%. Labour force was 1.7% more expensive, the cost of using building machines increased by 1.9% and the cost of building materials rose by 1.1%,” explained Paulus.

Year-on-year change in the construction price index, 2010–2025

 TotalLabour forceBuilding machinesBuilding materials
2010-2.8-5.8-0.6-1.7
20113.17.62.01.5
20124.66.37.23.7
20135.213.44.71.2
20140.51.32.20.0
20150.52.9-0.8-0.7
2016-0.81.2-1.1-1.8
20171.52.41.41.0
20181.74.02.60.4
20191.94.32.00.7
20200.70.81.90.5
20218.33.21.811.6
202217.87.99.623.7
20236.17.09.85.2
20241.66.31.7-1.1
20251.51.71.91.1

In the fourth quarter of 2025, the construction price index increased by 0.4% compared with the third quarter of 2025 and by 1.6% compared with the fourth quarter of 2024. “Compared with the third quarter, the biggest contributor to the index rise was the cost of building materials which started to go up again – the prices of materials increased by 0.6% in the fourth quarter. The main reason for the rise in the index compared with the fourth quarter of 2024 was again the 2% higher cost of materials,” said Paulus.

Quarterly change in the construction price index and its components compared to previous quarter, 2021–2025

 TotalBuilding materialsBuilding machinesLabour force
1st quarter 20210.70.90.30.4
2nd quarter 20215.27.31.41.8
3rd quarter 20215.17.12.42.0
4th quarter 20213.03.4-0.32.2
1st quarter 20224.66.82.90.8
2nd quarter 20224.96.32.92.3
3rd quarter 20223.84.42.12.9
4th quarter 20221.91.66.01.9
1st quarter 20231.51.32.21.8
2nd quarter 2023-0.5-1.31.10.6
3rd quarter 20230.3-0.40.41.7
4th quarter 20230.90.70.11.5
1st quarter 20240.2-1.0-0.82.6
2nd quarter 20240.70.22.41.3
3rd quarter 20240.0-1.00.20.9
4th quarter 20240.40.60.30.1
1st quarter 20250.1-0.20.30.6
2nd quarter 20250.91.21.20.1
3rd quarter 20250.20.3-0.60.4
4th quarter 20250.40.60.2-0.1
Change in the construction price index, 4th quarter 2025
 

3rd quarter 2025 – 
4th quarter 2025, %

4th quarter 2024 – 
4th quarter 2025, %

TOTAL

0.4

1.6

   labour force

-0.1

1.0

   building machines

0.2

1.1

   building materials

0.6

2.0

Index of detached houses

0.5

1.6

Index of blocks of flats

0.4

1.7

Index of industrial buildings

0.4

1.4

Index of office buildings

0.5

1.6

The repair and reconstruction work price index for the fourth quarter of 2025 rose by 0.2% compared with the third quarter of last year and by 1.3% compared with the fourth quarter of 2024.

Change in the repair and reconstruction work price index, 4th quarter 2025
 

3rd quarter 2025 – 
4th quarter 2025, %

4th quarter 2024 – 
4th quarter 2025, %

TOTAL

0.2

1.3

   labour force

0.5

1.5

   building machines

-0.1

1.5

   building materials

0.1

1.2


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 21 January 2026 are published. The indicator values may change if there are any revisions made in the data sources after this date.

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

For further information:

Susann Kivi
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee

Photo: Shutterstock