In March, the level of construction costs increased by 1.9% – Economy, finance

Riga, 26.04.2024. In March 2024, compared to March 2023, the level of construction costs in Latvia increased by 1.9%, according to data from the Central Bureau of Statistics. Workers’ wages increased by 6.8%, the maintenance and operation costs of machines and mechanisms – by 3.5%, while the prices of building materials decreased by 0.9%.

2024. in March compared to February, the level of construction costs increased by 0.1%. Workers’ wages increased by 0.7%, the maintenance and operation costs of machines and mechanisms – by 0.1%, while the prices of construction materials decreased by 0.3%.

In March, the average level of construction costs was most affected by the increase in wages for finishing construction workers (roofers, plasterers, sanitary technicians and others), as well as electricians.

In the 1st quarter of 2024, compared to the 1st quarter of 2023, the level of construction costs increased by 1.8%. Workers’ wages increased by 6.6%, the maintenance and operation costs of machines and mechanisms – by 3.6%, while the prices of building materials decreased by 1.0%.

In the 1st quarter of 2024, compared to the 4th quarter of 2023, the level of construction costs increased by 1.0%. Workers’ wages increased by 1.4%, the maintenance and operation costs of machines and mechanisms, as well as the prices of construction materials, increased by 0.9%.

Information about changes in construction costs in April 2024 will be published on May 29.

Methodological information

The purpose of the construction cost index (BII) is to reflect the average trends in the price changes of construction resources. BII is the inputs (input) price index; it shows price changes for the main types of resources invested in construction.

In 2024, around 230 construction companies and more than 45 trade companies provide data on the prices of construction resources. Construction cost index calculations also use the prices of building materials, which companies provide for the producer price index in industry and import price index calculations. In addition, the registered consumer prices for building materials are used in the calculations.

The sample of the price survey includes construction companies, which in 2023 had the largest amount of construction work performed by their own forces. In 94.8% of the surveyed companies, the amount of work performed by their own forces exceeded 1 million. EUR per year, of which 32.9% of companies’ work volume was over 5 million. euro per year. The selection criterion of trading companies is the size of their turnover and specialization.

More information on construction cost indices in Latvia is available in the “Descriptive Metadata” section of the official statistics portal.

Central Statistical Office