Developments between October and November 2019

The Construction Cost Index for multi-dwelling buildings remained unchanged between October and November 2019. The Construction Cost Index for multi-dwelling buildings (2015=100) has stayed at 111.9 since May 2019. Changes in various types of costs have balanced out or have been minor and have not affected the Index. The Construction Cost Index for multi-dwelling buildings increased by 0.1 percent between October and November 2018.

Contractors’ costs, which account for more than 82 percent of the Construction Cost Index, remained unchanged between October and November 2019. Contractors’ costs in the group ‘building materials’ fell by 0.1 percent. This was mostly due to lower costs of iron and steel, including reinforcement steel. Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 0.4 percent. This was mostly due to an increase of 1.7 percent in the cost of diesel oil compared with October. Machinery costs increased by 0.2 percent. Contractors’ other costs and the costs of wages and salaries remained unchanged.

Over the past month, investor costs, which consist of interest and credit costs, costs for plans, and central administration remained unchanged.

Developments between November 2018 and November 2019

The Construction Cost Index for multi-dwelling buildings increased by 2.9 percent between November 2018 and November 2019. Contractors’ costs rose by 2.3 percent. This increase in contractors’ costs led to an increase of 1.9 percentage points for the total index in the same period.

Among contractors’ costs, building material costs increased by 2.6 percent between November 2018 and November 2019. Iron and steel, including reinforcement steel, accounted for the largest price increases in the building materials group at 6.0 percent. Electric materials and white goods increased by 4.6 percent and 4.2 percent, respectively. Costs in other building material groups also rose, with the exception of the cost of wood products and reinforcement steel, which decreased by 2.3 percent and 1.6 percent, respectively.

Contractors’ other costs rose by 2.9 percent. Wages and salaries and machinery costs rose by 1.9 percent and 1.7 percent, respectively. Costs in the group ‘transport, fuel and electricity’ increased by 0.8 percent. In this group, the cost of heavy goods transport increased by 1.8 percent, while the cost of electricity and diesel oil fell by 2.2 percent and 0.6 percent, respectively.

Investor costs increased by 5.9 percent on an annual basis. This increase was mainly due to an increase of 18.5 percent in interest expenses.