Construction costs in the 4th quarter of 2006

18.01.2007

Compared with the 4th quarter of 2005, construction costs in Latvia in the 4th quarter of 2006 rose on average by 25.0%, according to the Central Statistical Bureau.

The most rapid rise (by 41.1%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 30.3% and the prices of construction materials rose by 15.2%. The most notable increases in construction costs were 31.9% in the renovation of office buildings, 25.7% in the reconstruction and construction of industrial, agricultural and trade buildings, 25.1% in the construction of residential buildings and 23.8% in the construction of transport facilities. There were increases of 23.0% in the construction of underground  pipelines and 22.1% in the renovation of education and healthcare buildings.

Compared with the 3rd quarter, construction costs in the 4th quarter of 2006  increased on average by 4.1%. There were increases of 7.6% in the maintenance and operational costs of machinery and equipment, 4.1% in the labour remuneration of workers and 3.3% in the prices of construction materials. The highest cost increases were in the construction of underground pipelines (by 5.5%), in the construction of residential buildings (5.1%) and in the renovation of educational and healthcare building (4.8%). There were increases of 3.8% in the costs of renovation of office buildings, 3.5% in the reconstruction and construction  of industrial, agricultural and trade buildings and 3.4% in the construction of transport facilities.

In comparison with 2005, construction costs in 2006 in Latvia rose on average by 20.9%. It should be noted that such a considerable rise in construction costs has not been observed in Latvia since 1995. The highest increase was in the labour remuneration of workers (by 44.2%). There were increases of 20.9% in the maintenance and operational costs of machinery and equipment and 10.1% in the prices of construction materials. The highest increases in construction costs were observed in the renovation of office buildings and in the reconstruction and construction of industrial, agricultural and trade buildings (by 31.1% and 22.1%, respectively). The increases in the costs were 21.2% in the construction of underground pipelines, 20.2% in the construction of transport facilities, 18.6% in the construction of residential buildings and 12.3% in the renovation of educational and healthcare buildings.

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