According to data released by Statistics Finland, construction costs in June 2023 increased by 2.1% compared to the same month last year. The rise in costs was primarily driven by an increase in the prices of thermal insulation materials (16.7%) and building fixtures (10.2%) over the year. However, there were notable declines in the costs of timber structures (-22.5%) and concrete elements (-9.5%).
The overall construction cost index, with the base year 2000 set at 100, indicates a gradual increase in costs for overall construction, labor, construction materials, and services over the years. However, there was a period around the year 2008 and 2009 when the index declined for about a year due to a decrease in the prices of materials and services. Notably, in the summer of 2021, there was a steep rise in material prices, significantly impacting the overall construction cost index.
Insights:
The 2.1% increase in construction costs compared to the previous year may have implications for the construction industry, homebuyers, and businesses involved in building projects. Rising costs of construction materials and services could influence property prices and construction project budgets. The notable decrease in costs for timber structures and concrete elements may be of interest to those in the construction sector looking to optimize expenses.