Construction costs in the 3rd quarter of 2006

18.10.2006

Compared with the 3rd quarter of 2005, construction costs in Latvia in the 3rd quarter of 2006 rose on average by 26.5%, according to the Central Statistical Bureau. After 1995 this is the steepest rise in construction costs during the year. The most rapid rise (by 58.9%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 22.9% and the prices of construction materials rose by 12.4%. The most notable increases in construction costs were 41.2% in the renovation of office buildings, 27.9% in the reconstruction and construction of industrial, agricultural and trade buildings, 25.6% in the construction of underground main pipelines and 24.6% in the construction of transport facilities. There were increases of 23.6% in the construction costs of residential buildings and 19.6% in the renovation of education and healthcare buildings.

Compared with the 2nd quarter, construction costs in the 3rd quarter this year increased on average by 8.1%. There were increases of 11.6% in the labour remuneration of workers, 8.7% in the maintenance and operational costs of machinery and equipment and 5.9% in the prices of construction materials. The highest cost increases were in the renovation of office buildings (by 9.8%) and in the construction of residential buildings as well as in the construction of underground main pipelines (by 8.4%). There were the following increases in the construction costs: 8.3% in the reconstruction and construction of industrial, agricultural and trade buildings, 7.7% in the construction of transport facilities and 6.1% in the renovation of education and healthcare buildings.

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