Wednesday, February 28, 2024

Construction costs up 11.2%

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In January 2023, it is estimated that the cost of building new housing increased by 11.2% year-on-year, 0.3 percentage points (p.p.) more than the previous month.

According to INE data, the price of materials and the cost of labour showed, respectively, year-on-year changes of 10.4% and 12.4%.

In January 2023, the year-on-year change in the New Housing Construction Cost Index (ICCHN) stood at 11.2%, a rate higher by 0.3 p.p. to that observed in December 2022. Material prices increased by 10.4%, decelerating by 3.7 p.p. compared to the previous month and the cost of labour increased by 12.4% (6.7% in December 2022).

“It should be noted that the significant increase in the cost of labour cannot be dissociated from the increase in the minimum wage (7.8%) in January 2023”, says INE.

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