Building material prices see slight rise, civil engineering costs mixed

Building material prices in Zimbabwe experienced a modest increase in the final quarter of 2024, while civil engineering costs presented a mixed picture, according to the latest figures released by the Zimbabwe National Statistics Agency (Zimstat).

The USD Building Materials Price Index (BMPI) reached 105.39 in December 2024, up from 104.09 in September 2024. This represents a 1.2 percent quarterly increase, slightly lower than the 4.0 percent rise recorded in the previous quarter.

The year-on-year increase was 8.2 percent, indicating a substantial rise in building material costs compared to December 2023.

Several key materials contributed to the quarterly price increase, including bricks, mortice locks, white paint, corrugated asbestos, steel windows, sinks, and bison board.

However, prices for items such as switch boxes, vinyl tiles, building lime, roof tiles, transport, glass, wall tiles, lavatory basins, bath showers, and water heaters remained stable.

In the civil engineering sector, the USD Civil Engineering Material Price Index (CEMPI) stood at 96.55 in December 2024, a slight increase from 96.14 in November 2024. This translates to a 0.4 percent month-on-month increase, down from 0.6 percent in November.

The year-on-year change for the CEMPI was -1.2 percent, meaning civil engineering material prices were, on average, 1.2 percent lower in December 2024 than in December 2023.

Shutter boards, cement, and asbestos pipes were the main drivers of the November CEMPI increase. Deformed steel, however, saw a price decrease.  Bricks, concrete pipes, and joint compound prices remained relatively stable.

The USD Civil Engineering Plant Price Index (CEPPI), which tracks the cost of civil engineering equipment, remained virtually unchanged between November and December 2024, registering a 0.0 percent month-on-month change.

However, the year-on-year change for the CEPPI was -8.7 percent, reflecting a significant decrease in plant prices compared to the previous year.

These indices provide valuable insights into the cost trends within the construction and civil engineering sectors, aiding businesses and policymakers in their planning and decision-making.  The indices are calculated based on USD prices, providing a consistent measure of price fluctuations. — BH24.