Analytics, Construction, Latvia, Real Estate

Reduction of costs in the construction of transport facilities and construction of underground main pipelines had the greatest lowering impact on overall level of construction costs.

Compared to June 2009, construction costs in June 2010 reduced on average by 2.6%. The most notable reduction among main resource groups witnessed the maintenance and operational costs of machinery and equipment – 7.9% and prices of building materials diminished by 1.9%. Influenced by several enterprises specialised in construction of civil engineering structures labour remuneration of workers grew by 3.1%.

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

Compared to the 2^nd quarter of 2009, construction costs in the 2^nd quarter of 2010 decreased on average by 3.2%. The maintenance and operational costs of machinery and equipment diminished by 7.1%, but prices of building materials – by 2.2%. Labour remuneration of workers grew by 0.3%. Reduction of costs in the construction of transport facilities and underground main pipelines had the greatest lowering impact on overall level of construction costs.

The prices data on construction resources are obtained from 140 construction enterprises and 35 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.

More detailed information is available in the CSB data base. Press release on changes of construction costs in July 2010 will be published on August 31, 2010.