In October 2024, construction cost increased.
The construction cost index has increased both monthly and yearly. According to the Sakstat data, the cost of construction increased by 6.8% compared to the corresponding month of the previous year.
According to Zuka Tavkelishvili, an associate researcher at Galt & Taggart, the rise in prices is driven by the increase in the wages of employees. The shortage of qualified staff is still a major challenge faced by the construction sector.
"As the Sakstat Construction Cost Index shows, construction costs rose slightly in October, by about 0.8%. Construction materials account for the largest share, but prices for construction materials have not increased and have remained at the same level for six months.
Property prices have risen amid increased migration and excess demand. This month, construction costs have risen due to higher wages; wages have risen by 4.5% month-on-month and by 30% year-on-year.
The biggest challenge in the construction sector is the skilled labor shortage, which ultimately leads to wage increases from month to month. Developers respond to this challenge in different ways: some train their own workers, others invite them from foreign countries and try to solve the problem in this way," Zuka Tavkelishvili said in an interview with Commersant.
The construction sector faces skilled labor shortage that will increase wages - Zuka Tavkelishvili
