Analytics, Construction, Latvia, Real Estate

Compared to November, the level of construction costs in Latvia in December 2015 grew by 0.1%. Prices of building materials went up by 0.2%, labour remuneration of workers – by 0.1%, whereas maintenance and operational costs of machinery and equipment did not change notably.

Compared to December 2014, construction costs decreased by 1.1%. Prices of building materials went down by 3.8%, maintenance and operational costs of machinery and equipment – by 0.4%, while labour remuneration of workers rose by 6.0%.

Construction Cost Indices (2010 = 100)

Data source: Central Statistical Bureau of Latvia

In the 4th quarter of 2015, compared to the 4th quarter of 2014, the level of construction costs decreased by 0.7%. Prices of building materials fell by 3.0%, maintenance and operational costs of machinery and equipment – by 0.7%, whereas labour remuneration of workers increased by 6.5%.

In 2015, data on prices of construction resources were provided by about 190 construction enterprises and 30 trade enterprises. Construction Cost Index calculations are based on the prices of building materials submitted by the enterprises for the calculation of producer price indices in industry and import price indices.

The sample includes construction enterprises with the highest value of own account construction works in 2014. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 60%, in 27% of which the value of own account construction work exceeded EUR 5 million per year. The criterion for the sample of trade enterprises is their turnover and specialisation.

More information on construction costs is available in the CSB database in section Producer Prices. Data on changes of construction costs in January 2016 will be published on 29 February.