On changes of construction costs in 2007

18.01.2008

Compared to 2006 construction costs in Latvia increased on average in 2007 by 26.2%. The most rapid rise (by 45.5%) was observed in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 33.2% and the prices of building materials rose – by 12.4%. The most noticeable increase of construction costs was recorded in the renovation of office buildings, as well as, in the reconstruction and construction of education, healthcare and sports buildings (by 35.5 % and 32.8%, respectively). Costs in the construction of residential buildings increased by 26.3%, in the construction of transport facilities – by 24.4%, in the reconstruction and construction of industrial, agricultural and trade buildings – by 22.2% and in the construction of underground main pipelines – by 20.6%.

 

Compared to the 4th quarter of 2006, construction costs in Latvia in the 4th quarter of 2007 rose on average by 22.3%, according to the Central Statistical Bureau. The most rapid rise (by 43.3%) was observed in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 29.2% and the prices of building materials rose by 6.6%. The most noticeable increase of construction costs was recorded in the renovation of office buildings, as well as, in the reconstruction and construction of education, healthcare and sports buildings (by 33.4 % and 28.5%, respectively). Costs of the construction of the transport facilities and residential buildings increased by 21.5% and 21.2%, respectively, of the construction of underground main pipelines – by 17.9%, and of the reconstruction and construction of industrial, agricultural and trade buildings – by 17.3%.

Compared to the 3rd quarter, construction costs in the 4th quarter of 2007 increased on average by 2.9%. Labour remuneration of workers increased by 6.2%, maintenance and operational costs of machinery and equipment – by 3.4%, but prices of building materials did not change. Most noticeable increase of construction costs could be observed in the renovation of office buildings – by 5.3%, in construction of underground main pipelines – by 4.2%, in the construction of transport facilities – by 3.0%. Costs of the reconstruction and construction of education, healthcare and sports buildings grew by 2.4%, of the construction of residential buildings – by 2.1%, and of the reconstruction and construction of industrial, agricultural and trade buildings – by 1.9%.

Prepared by Price Statistics Department
Producer Price Indices Section
tel. 67366813
Aleksandrs Gržibovskis