Developments between November och December 2019

The Construction Cost Index for multi-dwelling buildings decreased by 0.1 percent between November and December 2019. In the corresponding period in 2018, the Index remained unchanged. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, fell by 0.1 percent between November and December 2019.

Contractors’ costs in the group ‘building materials’ fell by 0.2 percent. In the group ‘building materials’, the cost of iron and steel, including reinforcement steel, increased by 0.2 percent. The cost of wood products and floor material rose by 0.1 percent, respectively. All costs in other building material groups decreased or remained unchanged. The cost of other building materials fell most, by 1.7 percent.

Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 0.2 percent. This was mostly due to a decrease of 0.9 percent in the cost of diesel oil compared with November. Contractors’ other costs, machinery costs and the costs of wages and salaries remained unchanged.

Over the past month, investor costs, which consist of interest and credit costs, costs for plans, and central administration increased by 0.1 percent.

Developments between December 2018 and December 2019

The Construction Cost Index for multi-dwelling buildings increased by 2.9 percent between December 2018 and December 2019. Contractors’ costs rose by 2.4 percent. This increase in contractors’ costs led to an increase of 2.0 percentage points for the total index in the same period.

Among contractors’ costs, building material costs increased by 2.7 percent between December 2018 and December 2019. Iron and steel, including reinforcement steel, accounted for the largest price increases in the building materials group at 6.2 percent. Electric materials and white goods increased by 4.7 percent and 4.0 percent, respectively. Costs in other building material groups also rose, with the exception of the cost of wood products and reinforcement steel, which decreased by 1.6 percent and 1.2 percent, respectively.

Contractors’ other costs rose by 3.1 percent. Wages and salaries and machinery costs rose by 1.9 percent and 1.7 percent, respectively. Costs in the group ‘transport, fuel and electricity’ increased by 1.7 percent. In this group, the cost of diesel oil and heavy goods transport increased by 3.6 percent and 2.5 percent, respectively, while the cost of electricity fell by 2.2 percent.

Investor costs increased by 5.1 percent on an annual basis. This increase was mainly due to an increase of 13.7 percent in interest expenses.