Georgia's construction costs rose 6.0% in a year, but the residential segment only 0.7%

September in figures

• Total index: +2.3% a month, +6.0% a year.
• Residential segment: +0.8% a month, +0.7% a year.
• Non-residential: +10.2% a year; civil engineering: +9.4%.
• Transport, fuel and electricity: +25.9% a year; construction wages: +5.4%.

According to Geostat, the monthly jump came mainly from a 7.3% rise in average nominal wages in construction. Over the year, transport, fuel and electricity added 2.99 percentage points to the index and wages 1.75 points. Construction materials were only 1.0% more expensive than a year earlier. Compared with February 2022, the index is 32.2% higher.

Why it matters for buyers

Slow growth in residential building costs gives developers less reason to raise prices on cost grounds. But higher wages and energy costs can still squeeze margins, especially for projects sold early at fixed prices, so buyers should check the developer's financial strength and delivery record.

For the August data, see our earlier report.