Developments between December 2019 and January 2020

The Construction Cost Index for multi-dwelling buildings increased by 0.8 percent between December 2019 and January 2020. In the corresponding period in 2018, the Index increased by 0.7 percent. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, increased by 0.2 percent between December 2019 and January 2020.

Contractors’ costs in the group ‘building materials’ increased by 0.4 percent. In the group ‘building materials’, the cost of white goods rose most, by 3.1 percent. All costs in building material groups rose slightly, with the exception of the cost of wood products, which decreased by 1.7 percent and iron and steel, including reinforcement steel which remained unchanged.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 0.8 percent. This was mostly due to an increase of 2.1 percent in the cost of diesel oil compared with December 2019. Contractors’ other costs rose by 0.1 percent, while 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 3.6 percent. This increase was mostly due to higher interest expenses.

Developments between January 2019 and January 2020

The Construction Cost Index for multi-dwelling buildings increased by 3.0 percent between January 2019 and January 2020. 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 2.6 percent between January 2019 and January 2020. 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 4.9 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 4.4 percent and 0.8 percent, respectively.

Contractors’ other costs rose by 3.3 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 1.2 percent. In this group, the cost of diesel oil and heavy goods transport increased by 7.9 percent and 3.4 percent, respectively, while the cost of electricity fell by 8.9 percent.

Investor costs increased by 5.8 percent on an annual basis. This increase was mainly due to an increase of 14.7 percent in interest expenses.