Developments between March and April 2019

The Construction Cost Index for multi-dwelling buildings rose by 1.1 percent between March and April 2019. In the corresponding period in 2018, the Index increased by 0.8 percent. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, increased by 1.0 percent between March and April 2019.

Building material costs increased by 1.6 percent. In the group ‘building materials’, costs increased for all building materials except plumbing material, which remained unchanged and reinforcement steel, which decreased by 0.1 percent. The largest price increase was the cost of iron and steel, including reinforcement steel, which increased by 5.7 percent.

Contractors’ other costs and wages and salaries rose by 1.9 percent and 0.1 percent respectively, while machinery costs remained unchanged. Costs in the group ‘transport, fuel and electricity’ rose by 0.1 percent. This was mainly due to a decrease in the cost of electricity by 5.4 percent

Over the past month, investor costs, which consist of interest and credit costs, costs for plans and central administration costs, increased by 1.5 percent.

Developments between April 2018 and April 2019

The Construction Cost Index for multi-dwelling buildings increased by 4.2 percent between April 2018 and April 2019. Contractors’ costs rose by 3.7 percent. This increase in 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 the most, by 5.8 percent, among contractors’ costs. Within that group, the cost of electricity, diesel oil and transport increased by 12.5 percent, by 8.0 percent and 3.7 percent respectively.

Building material costs increased by 5.1 percent. Iron and steel including reinforcement steel and material for painting accounted for the largest price increase in the building materials group, 11.1 percent and 8.5 percent respectively. Wood products rose by 6.4 percent, while other building materials increased by 5.5 percent. Costs in other building material groups also rose, but not to the same extent. Contractors’ other costs, machinery costs, wages, and salaries rose by between 1.9 percent and 3.2 percent.

Investor costs increased by 6.6 percent on an annual basis. This increase was mainly due to higher interest expenses.