The construction price index grew by a record amount in the fourth quarter of 2021 – by 14.7% YoY, state agency Statistics Estonia reported.
Over the whole year, the index rose by 8.3%, while the growth between Q3 and Q4 2021 stood at 3%.
Statistics Estonia analyst Ulo Paulus said: “Compared with the average for 2020, the cost of labor was 3.2% higher in 2021, the cost of using building machines rose by 1.8% and the costs of materials by 11.6%,” noted Paulus.
The growth of wages and salaries on its own accounted for a third of the index rise, with the rise in cost of materials accounting for much of the remainder.
The index calculation covers four categories of buildings: detached houses, blocks of flats, industrial buildings and office buildings.
The repair and reconstruction work price index, which refers to the last category, also saw a rise of 3% in Q4 2021. Compared with the average for 2020, the index rose by 7% in 2021, and the increase breakdown stood at 3.2% for labor costs, 0.9% for the cost of using building machines and 9.7% for the cost of building materials. (ERR/Business World Magazine)