Construction prices rose by 1.6% in 2024

In 2024, the construction price index increased by 1.6 percent compared with the average of 2023 and was mostly pushed up rising wages, data from Statistics Estonia show.
In the fourth quarter of 2024, the construction price index increased by 0.4 percent compared with the third quarter of last year and by 1.3 percent compared with the fourth quarter of 2023.
Ülo Paulus, leading analyst at Statistics Estonia, said the annual increase was primarily due to wage growth, which accounted for 65 percent of the total index rise.
"In 2024, the construction price index rose by 1.6 percent. Labor force was 6.3 percent more expensive and the cost of using building machines went up by 1.7 percent, while the cost of building materials decreased by 1.1 percent," he noted.
In the fourth quarter of 2024, the construction price index increased by 0.4 percent compared with the third quarter.
The cost of building materials rose by 0.6 percent, the cost of using building machines by 0.3 percent, and the cost of labor force by 0.1 percent.
The biggest contributor to the index rise compared with the third quarter was the cost of building materials which started to go up again and represented 85 percent of the rise in the index.
In the fourth quarter of 2024, the repair and reconstruction work price index rose by 0.8 percent compared with the third quarter of 2024 and by 0.9 percent compared with the fourth quarter of 2023.
The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labour force, building machines, and building materials.
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Editor: Helen Wright