According to Statistics Estonia the consumer price index of October is 1,5% higher than that one year ago. At the same time housing expenses have increased as much as 8% in one year.
By today, in comparison with the year 1997, the consumer expenses have almost doubled and the housing expenses have increased 3,2 times. This means that the increase in housing expenses exceeds the overall increase in consumer prices during that time 66%.
According to Statistics Estonia, as of September the construction price index which influences the real estate market mainly from the supply side, is 4,9% higher than that one year ago.
The increase in construction price index is mainly due to labour expenses becoming more expensive. Unfortunately this does not mean increase in salaries in that sector but the positive process of black-market labour legalization.