Construction costs in the 2ndquarter of 2006

18.07.2006

Compared with the 2nd quarter of 2005, construction costs in Latvia in the 2nd quarter of 2006 rose on average by 18.3%, according to the Central Statistical Bureau. The most rapid rise (by 44.5%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 16.9% and the prices of construction materials rose by 6.9%. The most notable increases in construction costs were 30.3% in the renovation of office buildings, 19.8% in the reconstruction and construction of industrial, agricultural and trade buildings, 18.3% in the construction of underground main pipelines and 17.5% in the construction of transport facilities. There were increases of 14.7% in the construction costs of residential buildings and 9.9% in the renovation of education and healthcare buildings.

Compared with the 1st quarter, construction costs in the 2nd quarter of 2006 increased on average by 8.8%. The increase in the labour remuneration of workers was notable, by 21.7%. There were increases of 6.1% in the maintenance and operational costs of machinery and equipment and 2.8% in the prices of construction materials. The highest cost increases were in the renovation of office buildings and renovation of education and healthcare buildings, 15.6% and 10.1%, respectively. There were the following increases in the construction costs: 8.7% in the reconstruction and construction of industrial, agricultural and trade buildings, 8.0% in the construction of transport facilities and 7.4% in the construction of residential buildings. Costs in the construction of underground main pipelines rose by 4.1%. It is worth noting that in comparison with the previous quarter such a notable rise in construction costs has not been observed since the 2nd quarter of 1995 when construction costs increased by 10.4%.

 

Prepared by the Producer Price Indices Section
Department of Price Statistics
Tel. 7366813

Aleksandrs Grzibovskis