New housing construction costs increased by 13.4%

According to Idealista, the cost of building a new home in Portugal continues to rise. The problem is not new, but has worsened with the war in Ukraine and the surge in inflation.

In July, the cost of building new homes rose by 13.4%, up 0.9 percentage points from the previous month, according to estimates released by the National Institute of Statistics (INE) on September 9. Material prices and labor costs recorded annual increases of 17.5% and 7.7%, respectively.

“In July, the estimated annual change in the new housing construction cost index (HNCI) was 13.4%, a rate 0.9 pp higher than in June. Material prices increased by 17.5%, accelerating by 0.9% compared to the previous month and the cost of labor increased by 7.7% (6.8% in June)”, indicates the bulletin of the INE.

The cost of materials contributed 10.2 pp to the formation of the annual rate of change of the HNCI (9.7% in June) and the labor component increased its contribution to 3.2 pp (2 .8% the previous month).

Prices for ceramic products continue to climb

Among the materials that have contributed the most to this development are ceramic products, with increases of around 70% year-on-year.

Diesel showed an annual growth of more than 30%.

Wood products, cement, cork and cork tiles, carpentry products and PVC pipes showed annual growth of more than 20%.

As for the month-to-month change, the monthly rate of change of the HNCI was 1.9% in July. Material costs and labor cost increased by 1.9% and 1.8% respectively. The material cost and labor cost components contributed 1.1 pp and 0.8 pp respectively to the monthly rate of change of the HNCI (-0.8% and 0.9% in June, in the same order).

Comments are closed.