Construction Materials in the Office Real Estate Segment Have Risen in Price by 29% over the Last 2 Months
The analysis includes three main types of products: construction (rough) materials, finishing materials and engineering equipment.
Thus, construction materials have demonstrated the greatest stability, having risen in price by a little more than 29% - this is primarily due to the fact that they are a well-localized segment from the production point of view. Nevertheless, in the same period of 2021, this figure was around 4%. Insulation materials, consumables (boring tools, drills, blades, etc.) and raised floors were affected the most by the changes that took place on the market — these items rose in price by an average of 30%. Converted timber was affected the least by the current situation — these increased by only 8%, while over the same period last year the price changes amounted to +7%.
Finishing materials rose in price by 48.5% - at the same time, as expected, a significant difference was revealed between the goods of Russian and foreign manufacturers: thus, domestic ceiling systems and porcelain stoneware have increased in price by an average of 15−20%, while the increase in the cost of Western analogues reaches 50%. A similar situation is observed in the sanitary ware category: Russian products have changed in price by no more than 25%, while foreign products have increased by 45−50%. It is worth indicating expressly that glass partitions have risen in price significantly less than other finishing materials — this is due to the developed production of goods in this category in the Russian Federation. Over the same period last year, the increase in prices for finishing materials amounted to about 5%.
Engineering equipment has risen in price by an average of 43%, which is almost ten times higher than in February-March 2021. Pipe distribution systems and fittings made of steel (57%), as well as air conditioning systems (55%) rose the most in price. Besides, the current situation has seriously affected cable products (from 40% to 70% depending on the manufacturer), engineering systems and electric tools (41%), as well as pumping systems (40%).
- Alexander Aleynikov,Commercial Director of Pridex
"Such a significant price swing in most positions is primarily due to exchange rate fluctuations, as well as rising inflation in the manufacturing countries and disruption of existing logistics chains. In the upcoming months, we expect the cost of materials and equipment to stabilize, but this will be possible only in the absence of a serious depreciation of the national currency. In any case, the changes that are taking place will have a significant impact on the implementation of projects in the construction sector — first of all, it will affect premium projects with a large share of the import component, however, we are already witnessing a tendency to optimize expensive positions in the middle price segment."