Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent between June and July 2023. This increase was due to higher construction clients’ costs, having increased by 1,9 percent. Contractors’ costs remained unchanged. These two groups account for 18 percent and 82 percent, respectively, of the Construction Cost Index.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The rise was mostly due to an increase of 3,5 percent in interest costs. All construction clients’ costs rose slightly or remained unchanged.

Costs in the group ‘transport, fuel and electricity’ decreased by 0.4 percent. The decrease was due to lower costs for electricity by 4.2 percent (compared with April, which is the latest available comparison data for electricity). Contractors’ overhead costs increased by 0.4 percent while the costs for wages and salaries and machinery remained unchanged.

Contractors’ costs for building materials were overall unchanged. All costs in the building material groups rose slightly, with the exception of reinforcement steel, concrete products, wood products and floor material which decreased. The costs of white goods increased the most, by 1.8 percent, while the costs of reinforcement steel decreased the most, by 2.1 percent.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 8.5 percent between July 2022 and July 2023. The annual rate of change increased in 2022 and through February 2023, but has declined thereafter.

Contractors’ costs rose by 2.9 percent, which led to an upward contribution to the Construction Cost Index of 2.3 percentage points. Construction clients’ costs increased by 33.4 percent, which led to an upward contribution to the Construction Cost Index of 6.2 percentage points. The increase of the construction clients’ costs was mostly due to higher interest costs by 82.2 percent.

Contractors’ costs for machinery and overhead costs increased by 16.5 percent and 5.3 percent respectively, while costs for wages and salaries rose by 4.4 percent between July 2022 and July 2023. Contractors’ costs in the group transport, fuel and electricity’ decreased by 3.8 percent. Within that group, the cost of diesel oil and electricity decreased by 17.6 percent and 9.8 percent respectively.

Contractors’ costs of building materials increased by 0.9 percent between July 2022 and July 2023. All costs in the building material groups rose, with the exception of reinforcement steel and wood products which decreased by 23.3 percent and 19.8 percent respectively, as well as iron and steel including reinforcement steel which decreased by 13.1 percent. The costs of plumbing material increased the most, by 11.3 percent.

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

The width of the bars represents the production factor’s weight share in percent in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each production factor.

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

The width of the bars represents the construction material group’s weight share in percent of all construction material in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each product category.