Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.9 percent in April compared with March. In the corresponding period in 2020, the Construction Cost Index decreased by 2.9 percent. This decrease was mainly due to the fact that the temporary reduction in employers’ costs that applies from 1 March to 30 June 2020 had been taken into account.

Contractors’ costs increased by 1.0 percent between March and April 2021, while construction clients’ costs rose by 0.5 percent. These two groups accounted for 82 percent and 18 percent of the Construction Cost Index, respectively.

Contractors’ costs for building materials increased by 2.2 percent. In the group ‘building materials’, the cost of wood products rose most, by 17.0 percent. The costs of iron and steel, including reinforcement steel rose by 4.1 percent. All costs in building material groups rose slightly, with the exception of floor material, which decreased.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 1.0 percent. Machinery costs, overhead costs and costs of wages and salaries remained unchanged.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The increase in construction clients’ costs was due to higher interest costs.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 6.8 between April 2020 and April 2021. Contractors’ costs rose by 7.1 percent, which led to an upward contribution of 5.8 percentage points to the total increase in the Construction Cost Index. Construction clients’ costs increased by 5.9 percent, which led to an upward contribution of 1.0 percentage points to the total index in the same period.

Contractors’ costs and investor costs have both been significantly affected by the temporary reduction in employers’ tax last year. Wages and salaries account for about 40 percent of the Construction Cost Index. In March 2020, data for calculating the effect on the Construction Cost index was unavailable.

Between April 2020 and April 2021, contractors’ costs for wages and salaries increased by 12.6 percent. In April 2020, wages and salaries were affected by the temporary reduction in employers’ tax and the extension of collective agreements. Overhead costs increased by 5.1 percent and contractors’ costs in the group ‘transport, fuel and electricity’ increased by 6.0 percent. Machinery costs decreased by 2.0 percent.

Contractors’ costs of building materials increased by 5.9 percent between April 2020 and April 2021. Wood products and reinforcement steel accounted for the largest price increase in the building materials group, 32.7 percent and 21.0 percent respectively. The costs of iron and steel, including reinforcement steel, rose by 13.4 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 decreased.

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

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