Developments between May and June 2019

The Construction Cost Index for multi-dwelling buildings remained unchanged between May and June 2019. 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, remained unchanged between May and June 2019.

Building material costs increased by 0.1 percent. In the group ‘building materials’, the cost of concrete rose most, by 0.4 percent. All costs in building material groups rose or remained unchanged, with the exception of the cost of floor material, which decreased.

Contractors’ other costs increased by 0.1 percent. The costs of wages and salaries and machinery costs remained unchanged, while costs in the group ‘transport, fuel and electricity’ decreased by 0.7 percent. This was due to a decrease in the cost of diesel oil by 3.1 percent.

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

Developments between June 2018 and June 2019

The Construction Cost Index for multi-dwelling buildings increased by 3.9 percent between June 2018 and June 2019. Contractors’ costs rose by 3.4 percent. This increase in contractors’ costs led to an increase of 2.8 percentage points for the total index in the same period.

Among contractors’ costs, the group ‘transport, fuel and electricity’ increased the most, by 4.6 percent. Within that group, the cost of electricity increased by 12.5 percent, while the costs for diesel oil and transport increased by 2.7 percent and 2.6 percent respectively.

Building material costs increased by 4.4 percent. Iron and steel, including reinforcement steel and material for painting, accounted for the largest price increases in the building materials group, 11.0 percent and 7.1 percent respectively. Wood products costs rose by 5.9 percent, while other building materials increased by 5.3 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.

Developments between June and July 2019

The Construction Cost Index for multi-dwelling buildings remained unchanged between June and July 2019. In the corresponding period in 2018, the Index increased by 0.3 percent. Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, remained unchanged between June and July 2019.

Building material costs increased by 0.1 percent. In the group ‘building materials’, only costs of electric material and floor material increased, by 1.8 percent and 0.9 percent respectively. The costs of other building materials, concrete, wood products and woodwork decreased, while costs in other building material groups remained unchanged.

Costs in the group ‘transport, fuel and electricity’ decreased by 0.9 percent. In this group, the cost of electricity decreased by 4.8 percent. Contractors’ other costs fell by 0.1 percent, while machinery costs, wages and salaries remained unchanged.

Over the past month, investor costs decreased by 0.1 percent.

Developments between July 2018 and July 2019

The Construction Cost Index for multi-dwelling buildings increased by 3.6 percent between July 2018 and July 2019. Contractors’ costs rose by 3.1 percent. This increase in contractors’ costs led to an increase of 2.6 percentage points for the total index in the same period.

Building material costs increased the most, by 4.1 percent, among contractors’ costs. Iron and steel, including reinforcement steel and material for painting, accounted for the largest price increases in the building materials group, 10.8 percent and 7.1 percent respectively. Costs in other building material groups also rose, but not to the same extent.

Costs in the group ‘transport, fuel and electricity’ increased by 2.6 percent. Contractors’ other costs rose by 3.1 percent, while machinery costs and wages and salaries increased by 2.2 percent and 1.9 percent respectively.

Investor costs increased by 5.9 percent on an annual basis. This increase was mainly due to higher interest expenses by 17.3 percent.