The rise in construction prices last year was driven by the increased cost of materials
According to Statistics Estonia, in 2021, the construction price index increased by 8.3% compared to the average of 2020. In the fourth quarter of last year, the construction price index rose by 3.0% compared to the third quarter, while the index growth compared to the fourth quarter of 2020 reached a record high – 14.7%.
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, analyst at Statistics Estonia, said that the rise in the construction price index in the fourth quarter of 2021, compared to the third quarter, was mainly due to the rising cost of materials. The total rise of the index was also supported by the growth of wages and salaries, which accounted for a third of the index rise. “Compared to the average of 2020, labour force was 3.2% more expensive in 2021, the cost of using building machines rose by 1.8% and the costs of materials by 11.6%,” noted Paulus.
In the fourth quarter of 2021, compared to the third quarter, the repair and reconstruction work price index also rose by 3.0%. Compared to the average of 2020, the index rose by 7.0% in 2021, whereas the increase was 3.2% for labour costs, 0.9% for the cost of using building machines and 9.7% for the cost of building materials.
| 3rd quarter 2021 – 4th quarter 2021, % |
4th quarter 2020 – 4th quarter 2021, % |
|
|---|---|---|
|
TOTAL |
3.0 |
14.7 |
|
labour force |
2.2 |
6.6 |
|
building machines |
-0.3 |
3.9 |
|
building materials |
3.4 |
19.9 |
|
Index of detached houses |
1.2 |
12.4 |
|
Index of blocks of flats |
4.3 |
19.2 |
|
Index of industrial buildings |
1.9 |
12.7 |
|
Index of office buildings |
3.6 |
14.8 |
| 3rd quarter 2021– 4th quarter 2021 % |
4th quarter 2020 – 4th quarter 2021, % |
|
|---|---|---|
|
TOTAL |
3.0 |
13.5 |
|
labour force |
2.4 |
6.7 |
|
building machines |
0.0 |
3.9 |
|
building materials |
3.6 |
18.2 |
Statistics Estonia collects and analyses data for the construction price index for the Ministry of Economic Affairs and Communications in order 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