Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.2 percent between July and August 2022. In the corresponding period in 2021, the Construction Cost Index increased by 0.9 percent.

Contractors’ costs increased by 0.3 percent, while construction clients’ costs decreased by 0.2 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.

Contractors’ costs for machinery increased the most, by 3.6 percent. Contractors’ overhead costs increased by 0.1 percent, while costs for wages and salaries remained unchanged. Costs in the group ‘transport, fuel and electricity’ decreased by 1.8 percent. The decrease was mostly due to lower costs for diesel oil by 6.5.

Contractors’ costs for building materials increased by 0.5 percent. The costs of electric material and plumbing material increased the most, by 5.2 percent and 3.6 percent respectively, while costs of wood products, reinforcement steel, iron and steel, including reinforcement steel, other building materials and concrete products decreased.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. Interest costs decreased by 0.8 percent. Other construction clients’ costs rose slightly or remained unchanged.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 13.8 percent between August 2021 and August 2022. During 2022, the annual rate of change increased continuously until July 2022 but decreased during August 2022. The decrease in the annual rate of change is mainly due to the fact that the annual changes for building materials were somewhat lower, but also the cost of diesel and truck transport as well as the construction clients cost were lower in August compared to July.

Contractors’ costs rose by 12.2 percent, which led to an upward contribution to the Construction Cost Index of 10.1 percentage points. Construction clients’ costs increased by 21.3 percent, which led to an upward contribution to the Construction Cost Index of 3.7 percentage points. The increase of the construction clients’ costs was mainly due to higher interest costs.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 27.2 percent between August 2021 and August 2022. Within that group, the cost of electricity and diesel oil rose the most, by 68.9 percent and 43.1 percent respectively. Contractors’ costs for machinery and overhead costs increased by 7.6 percent and 5.6 percent respectively, while costs for wages and salaries rose by 2.3 percent.

Contractors’ costs of building materials increased by 18.9 percent between August 2021 and August 2022. The costs of iron and steel including reinforcement steel increased by 31.4 percent, which is the lowest annual rate of change for these so far in 2022. The annual changes for wood products and concrete products were also lower in August compared to July. The cost of wood products increased by 1.7 percent.

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

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