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Producer price index for construction of dwellings

The purpose of this statistic is to show trends in prices in the first stage of commercial transactions for the construction, i.e. the producer price incl. direct construction costs and profits and excl. VAT, cost of land and other costs not directly linked to the construction. This statistic have been compiled since 2019 with indices dating back to 2015.

Statistical presentation

The Producer Price Index for Construction of Dwellings is a quarterly measurement of prices related to the construction of new dwellings relating to the first commercial transaction, i.e. the transaction carried out between the construction company and the builder. The index describes the price of constructing dwelling, i.e. the price a household or a developer pays the construction company, e.g. a producer of turn-key houses, for the construction of a dwelling.

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Statistical processing

Every quarter approximately 500-600 prices are collected from a sample of relevant construction companies in Denmark. Prices are collected through an electronic reporting form via Business in Denmark. The collected prices are merged with relevant information from the Danish Buildings and Dwellings Register. The index is calculated by use of a hedonic regression where different information (characteristics of the single dwelling) is used.

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The Producer Price Index for Construction of Dwellings is a business cycle indicator which is used to analyze economic developments. Furthermore, the index is used a deflator in the Danish National Accounts for constant price calculations.

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Accuracy and reliability

The sample is selected using a top down approach, i.e. the businesses with the largest turnover are selected for the sample to achieve the highest coverage possible with as few reporting units as possible. As the sample is not selected randomly the sample error cannot estimated, however, overall the index i assessed to be of high quality. Only final statistics are published.

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Timeliness and punctuality

These statistics are published quarterly, approx. 3-4 month after the end of the reference period.

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The statistic follows international standards and is therefore comparable with similar statistics from other countries.

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Accessibility and clarity

The statistics is published in News from Statistics Denmark and is available from Statbank Denmark (table PRIS90).

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