Construction cost index for residential buildings

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Prices and Consumption, Economic Statistics
Peter Fink-Jensen
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Construction cost index for residential buildings 2024

The construction cost index for residential buildings reflects the evolution of housing construction costs in Denmark. The index is used, among other things, to regulate building contracts. The primary users of this index are construction organizations, entrepreneurs, housing developer, professional craftsmen, solicitors, public institutions and the EU. The construction cost index has been published since the first quarter of 2003 and replaces the former construction cost index.

Statistical presentation

The construction cost index for residential buildings is produced each quarter to follow the change in construction costs for residential buildings in Denmark. The index is published for a one-family house and a multi-family house, in addition to all residential buildings which is based on a weighting of the two indices. All indices are further more broken down into seven sub-indices by profession and six sub-indices by building parts. Both the total indices and the sub-indices are divided into material costs and labor costs.

Statistical processing

The Construction cost index for residential buildings is based on three actual housing constructions. The constructions are typical for the construction of residential building in Denmark and are selected on the basis of an analysis of the current construction. The costs of the three constructions forms the weights of the indices. These weights are used to weigh together the prices of the cost components.

Relevance

Construction cost index for residential buildings is used for contract regulations and to follow the economic development of construction costs. The primary users of the index are construction organizations, entrepreneurs, housing developers, professional craftsmen, solicitors, public institutions and the EU.

Accuracy and reliability

The construction cost index for residential buildings covers the development of typical residential house construction in Denmark. It is assumed that the nine buildings that form the weight basis of the index are actually representative of typical house constructions in Denmark. Measures on accuracy are not available, but continuous monitoring and improvement of the quality of pricing data and weights means that the index is evaluated as being of high quality and representative of the general development of house building costs in Denmark.

Timeliness and punctuality

The statistics are published quarterly, approximately 65 days after the end of the quarter: primo March (Q4), primo June (Q1), primo September (Q2) and primo December (Q3). Yearly statistics are published once per year in connection with publication of the 4th quarter. The statistics are normally published without delay in relation to the announced time of publication.

Comparability

The Construction cost index for residential buildings follows European regulations and is therefore comparable to construction cost indices produced by countries that report to Eurostat. The index can also be linked to former construction cost indices for residential buildings (2003 = 100 and 1987 = 100). Historically, construction cost statistics have been calculated since the 1920's, but those are not comparable to the contemporary statistics.

Accessibility and clarity

The statistics are published in "Nyt fra Danmarks Statistik" (News from Statistics Denmark) and in "Byggeri og boligforhold" (Construction and housing) which appears in "Konjunkturstatistik" (Main indicators).

Yearly publications: Statistical Yearbook and Statistical ten-year review

Statistics are available from Statbank Denmark at: (http://www.Statbank.dk): Byg43 and Byg52. Find more information at Index of production in construction.

Furthermore, it is possible to subscribe to the construction index by so-called postcards.