In June 2025, Georgia’s Construction Cost Index (CCI) rose by 1.1% month-over-month and 6.1% year-over-year, reflecting ongoing cost pressures in the sector — primarily due to rising wages and material prices.

Key Drivers:

• The monthly increase was mainly attributed to a 4.8% rise in average nominal wages in the construction sector, which alone contributed 1.15 percentage points to the overall index change.

• The year-over-year increase of 6.1% was driven by:

  • A significant 23.5% increase in average construction wages, contributing 4.85 percentage points;

  • A 2.1% rise in construction material prices, contributing 1.25 percentage points.

Since February 2022, the CCI has surged by 24.4%, highlighting long-term inflationary trends in the sector.

Segment Breakdown – June 2025:

• Residential Construction:

  • ↓ 0.6% month-over-month

  • ↑ 7.4% year-over-year

• Non-Residential Construction:

  • ↑ 7.8% month-over-month

  • ↑ 11.7% year-over-year

• Civil Engineering (Infrastructure):

  • ↑ 0.4% month-over-month

  • ↑ 2.9% year-over-year

    The sharp increase in non-residential construction costs suggests shifting dynamics, possibly driven by demand in commercial or industrial projects. Meanwhile, residential construction costs eased slightly month-over-month, offering some temporary relief to developers, despite a strong annual increase.

    Overall, wage inflation remains the dominant factor pushing construction costs higher in 2025.