Georgia's construction costs rose 3.4%, but the residential index fell

One index, different types of work

The overall index fell 0.8% from July. Residential construction costs fell 0.7% over the month. On an annual basis, non-residential costs rose 4.6% and civil-engineering costs rose 7.0%, helping explain why the total rose even though the residential index edged down.

Geostat attributes much of the annual increase in the total index to transportation, fuel and electricity: that cost category rose 19.7% and added 2.31 percentage points to the total change. Construction materials rose 0.8%, contributing 0.48 points. The monthly fall was mainly associated with a 6.5% decrease in average nominal construction wages, which contributed minus 1.42 points. These are contributions to the overall index, not changes in apartment prices.

What a buyer can take from it

Use this release to test a sales argument, not as a signal to buy immediately or wait for a discount. If a seller says a flat costs more because 'construction in Georgia rose 3.4%', ask which figure they mean: the residential cost index was 0.6% lower. Ask what changed in the price of this flat—its size, finish, stage of construction or payment terms—and compare written offers with the same specification.

The 0.6% residential decline does not promise a cheaper apartment either. Land, financing and the developer's pricing are outside the index. The useful number for a buyer is the full amount payable by handover, including finishes and any permitted price changes. Get that amount and the conditions for changing it in writing before judging the offer.