Analytics, Construction, Estonia, Real Estate

The construction price index started to decrease at the beginning of 2009 compared to the same quarter of the previous year and the largest decrease was reported in the 3rd quarter (-10.5%). After that, the decrease has decelerated quarter by quarter – in the 4th quarter the decrease was 10% and in the 1st quarter of 2010 it was 7.5%.

In the second quarter of 2010, the construction price index was mainly influenced by the 6.4% decrease in labour costs. The prices of building machines have decreased the least compared to the same period of the previous year. Of building materials, the index was mainly influenced by the fall in the prices of insulations products and finishing materials.

Compared to the 1st quarter of 2010, the change in the construction price index was –0.1%, mainly influenced by the decrease in labour costs. The repair and reconstruction work price index also fell by 0.1% compared to the 1st quarter of 2010, and by 3.5% compared to the 2nd quarter of the previous year.

The calculation of the construction price index covers four groups of buildings – detached houses, blocks of flats, industrial buildings and office buildings as well as office buildings covered by the repair and reconstruction work price index. The index expresses the change in the expenditures on construction taking into consideration the price changes of basic inputs (labour force, building materials and building machines).

Change in the construction price index, 2nd quarter 2010

Change in the repair and reconstruction work price index, 2nd quarter 2010