Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.3 percent in May compared with April. In the corresponding period in 2020, the Construction Cost Index remained unchanged. Last year, the temporary reduction in employers’ costs that applied from 1 March to 30 June 2020 was taken into account.

Contractors’ costs increased by 0.4 percent between April and May 2021 and construction clients’ costs increased by 0.1 percent. These two groups accounted for 82 percent and 18 percent of the Construction Cost Index, respectively.

Contractors’ costs for building materials increased by 0.7 percent. In the group ‘building materials’, the cost of reinforcement steel rose most, by 1.9 percent. The costs of iron and steel, including reinforcement steel and wood products, which increased dramatically on an annual basis, rose by 1.8 percent and 1.2 percent respectively. All costs in building material groups rose slightly, or remained unchanged.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 0.2 percent. Machinery costs and overhead costs rose by 0.1 percent each, while costs of wages and salaries remained unchanged.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. All of the construction clients’ costs rose slightly or remained unchanged.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 7.2 between May 2020 and May 2021. Contractors’ costs rose by 7.4 percent, which led to an upward contribution of 6.1 percentage points to the total increase in the Construction Cost Index. Construction clients’ costs increased by 6.1 percent, which led to an upward contribution of 1.1 percentage points to the total index in the same period.

Contractors’ costs and investor costs were both significantly affected by the temporary reduction in employers’ tax last year. Wages and salaries account for about 40 percent of the Construction Cost Index.

Between May 2020 and May 2021, contractors’ costs for wages and salaries increased by 12.6 percent. In May 2020, wages and salaries were affected by the temporary reduction in employers’ tax and the extension of collective agreements. Contractors’costs in the group ‘transport, fuel and electricity’ increased by 6.9 percent. Overhead costs rose by 5.3 percent, while machinery costs fell by 2.0 percent.

Contractors’ costs of building materials increased by 6.5 percent between May 2020 and May 2021. Wood products and reinforcement steel accounted for the largest price increase in the building materials group, 34.3 percent and 23.1 percent respectively. The costs of iron and steel, including reinforcement steel, rose by 15.2 percent. The sharp increase in costs for wood products and steel is due to a shortage of raw materials as a result of increased global demand. All costs in building material groups rose, with the exception of white goods, which remained unchanged.

Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.

Construction Cost Index for multi-dwelling buildings, excl. VAT