Construction costs in the 2ndquarter of 2007

18.07.2007

Compared with the 2nd quarter of 2006, construction costs in Latvia in the 2nd quarter of 2007 rose on average by 29.1%, according to the Central Statistical Bureau. The most rapid rise (by 47.9%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 36.6% and the prices of construction materials rose by 15.6%. The most notable increases in construction costs were 37.9 % in the renovation of office buildings, in the reconstruction and construction of education, healthcare and sports buildings (by 34.2%). Costs in the construction of residential buildings increased by 30.5%, in the construction of transport facilities - by 26.9%, in the reconstruction and construction of industrial, agricultural and trade buildings - by 25.3% and in the construction of underground main pipelines - by 23.4%.

Compared with the 1st quarter, construction costs in the 2nd quarter of this year increased on average by 7.7%, the labour remuneration of workers increased by 17.8%, the maintenance and operational costs of machinery and equipment - by 8.7%, the prices of construction materials – by 0.6%. The highest cost increases were in the renovation of office buildings – by 13.4% and in the construction of residential buildings – by 8.0%. In the reconstruction and construction of education, healthcare and sports buildings, as well as in the construction of transport facilities construction costs increased by 6.9%. In the reconstruction and construction of industrial, agricultural and trade buildings construction costs increased by 6.1% and in the construction of underground main pipelines rose by 5.2%.

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