Building construction costs have escalated in recent years. Industry analysts expect these trends to continue over the medium term.
- Building and construction costs have recently outpaced increases in the Consumer Price Index.
- The upward pressures have been driven by skills shortages and increased domestic and global demand for commodities.
- Private sector forecasts indicate a continuation of strong global demand for commodities in coming years, particularly from China and India.
- Consistent with that, industry analysts expect construction costs to continue to grow more strongly than the Consumer Price Index in the medium term.