In the first quarter of 2022, the construction price index increased by 4.6% QoQ and by 19.3% YoY, Statistics Estonia said on April 21.
In the first quarter of this year, compared with the first quarter of 2021, the construction price index was influenced primarily by the rising cost of materials, which accounted for 86% of the total index increase, Statistics Estonia analyst Ulo Paulus said, according to a press release.
“Compared with the fourth quarter of 2021, labor was 0.9% more expensive, the cost of using building machines rose by 3.1% and the cost of materials by 6.8%,” Paulus explained.
In March, Russia’s invasion of Ukraine prompted price increases in construction, with the prices of wood and wood products increasing by 15.7% and metal products by 18.8%.
The repair and reconstruction work price index, meanwhile, increased by 16.7% compared with the fourth quarter of 2021 and by 3.1% YoY.
The construction price index expresses the change in construction expenditures, taking into consideration the price changes of three basic inputs: labor force, building materials and building machines. The calculation of the construction price index covers four groups of buildings: detached houses, apartment buildings, industrial buildings and office buildings. The repair and reconstruction work price index pertains specifically to office buildings. (ERR/Business World Magazine)