The increase was led by a 4.8% rise in wage-related expenses. Other cost components that recorded annual increases included “other costs”, up 2.5%, transport expenses, up 1.7%, and machinery costs, up 1.5%.

Material costs, however, fell 0.9% compared with the first quarter of 2025.

Within that category, construction materials posted the sharpest decline, down 1.4%, followed by plumbing, sanitary and ventilation materials, which fell 0.9%. Electrical and communications materials rose 0.5%.

On a quarterly basis, the Construction Cost Index increased 0.3% in the first quarter from the previous quarter, INSTAT said.

The quarterly rise was mainly driven by a 1.7% increase in “other costs” and a 0.6% rise in wage expenses. Machinery and transport costs each increased 0.3%.

Material costs edged down 0.2% from the fourth quarter of 2025, reflecting declines of 0.8% in plumbing, sanitary and ventilation materials and 0.4% in construction materials. Electrical and communications materials increased 0.2%.

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The construction cost increase was driven by a 6.2% rise in construction sector wages, followed by machinery costs at 2.2% and transportation expenses at 1.4%.

Meanwhile, construction material prices fell slightly by 0.7%, although costs for electrical and communication materials rose by 1.8%.

Quarter-on-quarter, construction costs slightly increased by 0.4% compared to Q1 2025, driven mainly by a 1.6% rise in wage expenses. Machinery and transport costs each rose by 0.5%, while spending on materials declined by 0.1%.

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According to INSTAT, the construction cost index slightly rose 0.4% year-on-year in the first quarter of 2025.

Compared with the same quarter of the previous year, the largest price increase is observed in the salary expenditure group by 5.2%, followed by machinery expenditures by 2.4 %, other expenditures by 2%, transport expenditure by 1.7 %, and energy expenditure by 0.6 %.

On the other hand prices of material expenditures fell by 1.1%.

Within the material expenditures group, the index of the electric materials and communication group recorded the highest decrease by 2.2 %, followed by construction materials by 0.8%.

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Compared with the first quarter of 2023, the highest increase is noted in the group of energy expenditure by 7.5%, followed by salary expenditure up by 4.4 %, transport spending increasing by 3.7 %, material expenditure by 2.5% and machinery expenditure 1.5%.

In the group of material expenditure group, the construction material subgroup recorded highest increase by 2.6%, followed by hydro sanitary and ventilation materials by 2.5% and electric and communication materials by 2.1%.

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According to INSTAT data, the construction cost index measured 111.6 points in the first quarter.

Compared with the first quarter of 2022, the largest increase is observed in the group “Other expenditures” by 7.5 %, followed by groups “Energy expenditures” by 6.3 %, “Material expenditures” by 5.9 %, “Salary expenditures” by 4.4 %, “Transport expenditures” by 3.5 % and “Machinery expenditures” by 3.2 %.

The group “Material expenditures”, the index of the subgroup “hydro sanitary materials” registered the highest increase by 6.2 %, followed by “construction materials” by 6.0 % and “electric materials and communication” by 5.2 %”.

Construction Cost Index for Dwellings rose 1.2% in the first quarter of 2023 compared to the last quarter of 2022. The largest increase is observed in “Energy expenditures” by 2.5 %.

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