In July, new housing construction costs increased by 2.3% compared to the same month last year, according to the most recent estimates from the National Statistics Institute (INE).
In July, the year-on-year variation in the New Housing Construction Cost Index (ICCHN) stood at 2.3%, a rate 0.5 pp lower than that observed in June. The prices of materials showed a variation of -1.5% (-0.7% in the previous month) and the cost of labour increased by 7.7%, 0.2 p.p. less than in June”, reads the bulletin released by INE.
The institute states that “the cost of labour contributed with 3.2 p.p. (as in the previous month) to the formation of the ICCHN year-on-year rate of change and materials with -0.9 p.p. (-0.4 p.p. in June)”.
According to INE, “among the materials that most negatively influenced the aggregate price variation are mild and galvanized steel sheet and bitumen, which showed decreases of around 25% year-on-year, and energy products, steel for concrete and heavy and light profiles and covering, insulation and waterproofing materials, all with reductions of around 15%”.
“In the opposite direction, cement, ready-mixed concrete and paints, primers, undercoats and varnishes stood out with year-on-year growth of around 10%”.
With regard to the chain variation, INE highlights that the ICCHN monthly variation rate was 0.3% in July, 0.3 pp more compared to the previous month, with the cost of materials rising 0.2% and that of labour 0.4%.