Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.4 percent between September and October 2023. This increase was due to higher construction clients’ costs, having increased by 2.0 percent. The increase was offset by the fact that contractors’ costs decreased by 0.1 percent. 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 3,8 percent in interest costs. All construction clients’ costs rose slightly or remained unchanged.

Costs in the group ‘transport, fuel and electricity’ decreased by 3.0 percent. The decrease was mostly due to lower costs for electricity by 12.9 percent (compared with July, which is the latest available comparison data for electricity). Contractors’ overhead costs increased by 0.2 percent, while the costs for wages and salaries, and machinery remained unchanged.

Contractors’ costs for building materials increased by 0.2 percent. All costs in the building material groups rose slightly, with the exception of concrete products, wood products and plumbing material which decreased. The costs of woodwork increased the most, by 2.2 percent, while the costs of concrete products decreased the most, by 1.1 percent.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 6.6 percent between October 2022 and October 2023. The annual rate of change was lower in October 2023 compared with September 2023 and has been declining since February 2023, with the exception of August 2023.

Contractors’ costs rose by 1.6 percent, which led to an upward contribution to the Construction Cost Index of 1.3 percentage points. Construction clients’ costs increased by 27.7 percent, which led to an upward contribution to the Construction Cost Index of 5.3 percentage points. The increase of the construction clients’ costs was mostly due to higher interest costs by 63.2 percent.

Contractors’ costs for machinery and overhead costs increased by 6.2 percent and 4.2 percent respectively, while costs for wages and salaries rose by 4.4 percent between October 2022 and October 2023. Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 13.5 percent. Within that group, the cost of electricity and diesel oil decreased by 45.5 percent and 6.7 percent respectively.

Contractors’ costs of building materials increased by 1.3 percent between October 2022 and October 2023. All costs in the building material groups rose, with the exception of reinforcement steel and wood products which decreased by 20.5 percent and 11.4 percent respectively, as well as iron and steel including reinforcement steel which decreased by 10.0 percent. The costs of other building materials and white goods increased the most, by 8.9 percent and 8.6 percent respectively.

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

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