Iceland building costs rise 0.6% to 130.4 points in October 2026

Statistics Iceland put its building cost index at 130.4 points in October, up 0.6% on the month, with domestic materials and labour behind the rise.

The facts

• Statistics Iceland's building cost index stood at 130.4 points in October 2026, on a base of December 2021 = 100.
• The index rose +0.6% against the previous month.
• Domestic materials were the largest mover, up 1.2% on the month.
• Imported material prices were unchanged, while labour costs rose 0.4%.
• Machinery, transport and energy consumption added 0.5%.
• The release states no annual rate, so the 12-month picture cannot be read from it.

What it means for your money

• New-build prices in Iceland rest on a cost base that is still climbing. Buying finished stock avoids the cost, not the price it sets.
• If you already own there, the cost of work on your property runs on the same inputs this index tracks: domestic materials, labour, machinery and energy.

What to watch

• Imported material prices were unchanged this month while the other three components rose; whether that holds is the next thing the index will show.
• The release carries no annual change, so a 12-month comparison has to wait for data the publisher has not put in this edition.
• The index measures what it costs to build, not what finished homes sell for, and the two can move apart.

Sources: Statistics Iceland https://www.statice.is/publications/news-archive/prices/building-cost-index-in-october-2026/