Developments between January and February 2020

The Construction Cost Index for multi-dwelling buildings decreased by 0.2 percent between January and February 2020. In the corresponding period in 2018, the Index increased by 0.2 percent. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, decreased by 0.1 percent between January and February 2020.

Contractors’ costs in the group ‘building materials’ remained unchanged. In the group ‘building materials’, the cost of floor material rose most, by 1.1 percent. The cost of plumbing material rose by 0.5 percent. The cost of iron and steel including reinforcement steel, white goods and other building materials also rose. All costs in other building material groups decreased or remained unchanged. The cost of electric materials fell most, by 0.5 percent.

Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 0.8 percent. This was mostly due to a decrease of 3.0 percent in the cost of diesel oil compared with January. Contractors’ other costs fell by 0.6 percent, while the costs of wages and salaries remained unchanged. Machinery costs increased by 0.2 percent.

Over the past month, investor costs, which consist of interest and credit costs, costs for plans, and central administration decreased by 0.5 percent.

Developments between February 2019 and February 2020

The Construction Cost Index for multi-dwelling buildings increased by 2.5 percent between February 2019 and February 2020. Contractors’ costs rose by 2.0 percent. This increase in contractors’ costs led to an increase of 1.6 percentage points for the total index in the same period.

Among contractors’ costs, building material costs increased by 2.5 percent between February 2019 and February 2020. Iron and steel, including reinforcement steel, accounted for the largest price increases in the building materials group at 6.2 percent. White goods and electric materials increased by 5.4 percent and 4.4 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 4.7 percent and 0.4 percent, respectively.

Contractors’ other costs rose by 2.2 percent. Wages and salaries and machinery costs rose by 2.0 percent and 0.9 percent, respectively. Costs in the group ‘transport, fuel and electricity’ decreased by 0.5 percent. In this group, the cost of electricity fell by 9.6 percent, while the cost of heavy goods transport and diesel oil increased by 2.1 percent and 1.6 percent, respectively.

Investor costs increased by 5.0 percent on an annual basis. This increase was mainly due to an increase of 14.4 percent in interest expenses.