Analytics, Construction, Latvia, Real Estate

Labour remuneration of workers decreased by 5.6%, maintenance and operational costs of machinery and equipment – by 1.0%, prices of building materials – by 0.9%.

Reduction of construction costs in the construction of transport facilities, as well as in the renovation and construction of education, healthcare and sports buildings had the greatest lowering impact on overall level of construction costs.

Compared to September 2008, construction costs in September 2009 on average decreased by 15.0%. Most rapid reduction (by 27.4%) among the main resource groups was observed in the labour remuneration of workers. Prices of building materials reduced by 10.9%, but maintenance and operational costs of machinery and equipment – by 5.8%.

Changes of construction costs by main resource groups, compared to corresponding quarter of previous year

Compared to 3^rd quarter of 2008, construction costs in 3^rd quarter of 2009 on average decreased by 14.4%. Most rapid reduction (by 25.4%) among the main resource groups was observed in the labour remuneration of workers. Prices of building materials reduced by 11.1%, but maintenance and operational costs of machinery and equipment - by 4.8%. Reduction of construction costs in the construction of transport facilities, as well as in the reconstruction and construction of industrial, agricultural and trade buildings had the greatest lowering impact on overall level of construction costs.

Every month data on the prices of construction resources are obtained from 132 construction enterprises and 29 trade enterprises Construction enterprises provide price data for all resources, while trade enterprises indicate only the prices of building materials. The construction enterprises-respondents are selected by way of target sampling choosing the enterprises with the highest value of own account construction. The sampled construction enterprises differ in specialisation and represent various regions of Latvia. The criterion for the sample of trade enterprises is their turnover and specialisation.