Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 3.4 percent between March and April 2022. In the corresponding period in 2021, the Construction Cost Index increased by 0.9 percent.

Contractors’ costs increased by 3.2 percent, while construction clients’ costs rose by 4.2 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.

Contractors’ costs for building materials increased the most, by 5.6 percent. In the group ‘building materials’, the cost of reinforcement steel increased the most, by 21.6 percent. The costs of iron and steel, including reinforcement steel, rose by 12.6 percent. All other costs in the building material groups rose slightly or remained unchanged, with the exception of white goods, which decreased. The monthly change in cost of wood products, which have been negative or unchanged for a period, increased by 6.8 percent in April.

Contractors’ overhead costs increased by 2.1 percent. Costs in the group ‘transport, fuel and electricity’ increased, by 1.5 percent. The increase was due to increases in the cost of diesel oil and transport by 5.1 percent and 2,7 percent respectively. Costs of wages and salaries rose by 0,4 percent, while costs of machinery remained unchanged.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. All construction clients’ costs increased. Interest costs rose the most, by 9.8 percent.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 12.2 percent between April 2021 and April 2022. This is the highest annual rate of change since May 1981. The increase during the last twelve-month period was mainly due to higher building material costs, but also transport, fuel and electricity as well as construction clients’ costs have a major impact.

Contractors’ costs rose by 13.5 percent, which led to an upward contribution to the Construction Cost Index of 11.1 percentage points. Construction clients’ costs increased by 6.3 percent, which led to an upward contribution to the Construction Cost Index of 1.1 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 27.4 percent between April 2021 and April 2022. Within that group, the cost of diesel oil and electricity rose the most, by 61.2 percent and 57.6 percent respectively. Contractors’ overhead costs and costs for machinery increased by 4.6 percent and 3.6 percent respectively, while costs for wages and salaries rose by 0.5 percent.

Contractors’ costs of building materials increased by 24.4 percent between April 2021 and April 2022. In the group ‘building materials’, the costs of reinforcement steel, iron and steel, including reinforcement steel and wood products remained high. These costs have been high for some time due to a shortage of raw materials as a result of global demand. The costs of reinforcement steel and iron and steel, including reinforcement steel increased by 107.2 percent and 62.6 percent respectively, while the cost of wood products rose by 45.4 percent. Costs in other building material groups also increased.

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

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