In May 2025, Georgia’s Construction Cost Index (CCI) rose by 0.2% compared to the previous month and by 5.0% compared to May 2024, according to official data.

Segment Breakdown:

• Residential construction costs increased by 0.3% month-on-month and by 8.9% year-on-year.

• Non-residential construction costs decreased by 0.7% month-on-month but rose 1.6% year-on-year.

• Civil engineering projects saw a 0.5% monthly increase and a 2.2% annual increase.

Main Drivers:

The monthly rise in the CCI was largely driven by a 0.3% increase in construction material prices, which contributed 0.18 percentage points to the overall monthly change.

On an annual basis, the 5.0% increase was primarily fueled by:

• A 17.8% rise in average monthly nominal wages in the construction sector, contributing 3.62 percentage points.

• A 2.0% rise in construction material prices, adding 1.23 percentage points to the yearly index growth.

Since February 2022, the Construction Cost Index has increased by 23.1%, highlighting the sustained cost pressures in Georgia’s construction sector over the past three years.