Rising labour costs leading to increased construction prices in Georgia, statistic shows

The Construction Cost Index increased 0.8 percent month-on-month in November 2022. Photo: Nino Alavidze/Agenda.ge

Agenda.ge, 06 Jan 2023 - 12:06, Tbilisi,Georgia

Construction costs across Georgia have increased following boosts in salaries of employees in the sector, the latest figures released on Friday by the National Statistics Office are showing.

In its latest updates on the Construction Cost Index - which measures the average price level of construction materials and services used for the construction of residential, non-residential, and civil buildings - the Office noted the number had increased 0.8 percent month-on-month.

The change was mainly due to the 3.4 percent increase in average monthly nominal wages of employees in the construction sector, which contributed 0.44 percentage points to the total Index change", the body said. 

The Office also said the CCI had increased by 9.0 percent over February data, adding it had again been "largely caused" by the 16.5 percent increase in wages that contributed 3.21 percentage points to the change in the Index.

The CCI figures of November are compared to the preceding month and February numbers in the following table, which also shows contributions of cost categories to the total Index:

Image: Geostat