Developments between October and November 2018

The Construction Cost Index for multi-dwelling buildings increased by 0.1 percent between October and November 2018. In the corresponding period in 2017, the Index also increased by 0.1 percent. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, also increased by 0.1 percent between October and November 2018.

Building material costs rose by 0.2 percent. In the group ‘building materials’, the costs increased mainly for plumbing materials, which increased by 0.7 percent. The cost of wood products and iron and steel rose by 0.6 percent and 0.5 percent respectively. These cost increases were offset by lower costs of primarily electric material, which fell by 0.4 percent.

Machinery costs increased by 0.4 percent. Contractors’ other costs rose by 0.1 percent, while wages and salaries remained unchanged. Costs in the group ‘transport, fuel and electricity’ decreased by 0.2 percent, in which the cost of diesel oil decreased by 0.7 percent.

Over the past month, investor costs decreased by 0.2 percent. This decrease was due to lower interest expenses.

Developments between November 2017 and November 2018

The Construction Cost Index for multi-dwelling buildings increased by 3.6 percent between November 2017 and November 2018. Contractors’ costs rose by 3.8 percent. These increased contractors’ costs led to an increase of 3.1 percentage points for the total index in the same period.

The group ‘transport, fuel and electricity’ increased most, 7.2 percent, among contractors’ costs. Within that group, the cost of diesel oil and electricity increased by 16.3 percent and 12.0 percent respectively.

Building material costs increased by 5.2 percent. Material for painting, wood products and iron and steel, including reinforcement steel, accounted for the largest price increase in the building materials group, 11.3, 8.6 and 8.3 percent, respectively. Costs in other building material groups also rose, but not to the same extent. Contractors’ other costs, machinery costs, wages, and salaries rose between 1.6 percent and 3.4 percent.

Investor costs increased by 2.6 percent on an annual basis.