In Estonia, the construction price index grew by 14.7 from the fourth quarter of 2020 to the respective period of 2021, while in 2021 as whole, compared to the average level of 2020, it increased at a slower pace, by 3%, official statistics showed.
Statistics Estonia wrote in a press release earlier in January that the construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic components: labour force, building materials and building machines. The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings.
Ülo Paulus, an analyst at Statistics Estonia, explained that the rise in the construction price index in the fourth quarter of 2021, compared to the third quarter, was mainly due to the rising cost of materials. The total rise of the index was also supported by the growth of wages and salaries, which accounted for a third of the index rise. «Compared to the average of 2020, labour force was 3.2% more expensive in 2021, the cost of using building machines rose by 1.8% and the costs of materials by 11.6%», noted Paulus.
In the fourth quarter of 2021, compared to the third quarter, the repair and reconstruction work price index also rose by 3.0%. Compared to the average of 2020, the index rose by 7.0% in 2021, whereas the increase was 3.2% for labour costs, 0.9% for the cost of using building machines and 9.7% for the cost of building materials, according to Statistics Estonia.
Construction prices in Estonia grew by 14.7% Q4 to Q4
