Construction costs in Sweden show slight monthly increase, annual decrease in March 2025

In March 2025, Sweden’s Construction Cost Index (CCI) for multi-dwelling buildings experienced a modest month-on-month rise of 0.4%, while registering a 0.3% decrease compared to March 2024. This marks the second consecutive month of annual decline, following a 0.6% drop in February. 

Monthly Developments

The monthly uptick was primarily driven by a 0.6% increase in contractors’ costs, which constitute 82% of the total index. In contrast, construction clients’ costs, accounting for the remaining 18%, decreased by 0.3%. 

Within contractors’ expenses, the ‘transport, fuel, and electricity’ category saw a 1.9% increase, with electricity prices rising by 5.4% and diesel oil by 3.3%. Building material costs also went up by 0.8%, notably with painting materials increasing by 8.5% and wood products by 2.7%. 

Annual Trends

Year-over-year, contractors’ costs rose by 2.8%, while construction clients’ costs declined by 10.5%, influenced by a 23.5% reduction in interest expenses. Among building materials, wood products and painting materials experienced the most significant annual increases, at 9.3% and 8.4% respectively. 

These figures suggest a stabilization in construction costs, with material prices exerting upward pressure, while reduced financing costs for clients contribute to the overall annual decrease.

Source: SCB-Statistics Sweden