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Construction Costs in Portugal up by 8.5% in November 2021

The trend remains with construction costs accelerating, mainly due to the cost of materials. In the chain variation, the increase in new housing construction costs was 1.6%. Material costs rose 0.8% compared to the previous month, and labor costs rose 2.8%. Thus, it is concluded that, for example in October 2021, the...
06 Jan 2022 1 min reading

The trend of construction costs accelerating remains, mainly due to the cost of materials.

In November 2021 alone, the costs of building new housing rose 8.5%, compared to the same period in 2020, and accelerated by 1.2% compared to the rate observed in October.

According to the New Housing Construction Cost Index (ICCHN) released by the INE, the price of materials showed an increase, of 9.4%, up from 8.9% in October, and the cost of labor in Portugal rose 7.3%, up by 5.2% from the previous month.

On a quartly basis, new housing construction costs rose 1.6%. The cost of materials rose 0.8% compared to the previous month, and labour costs rose by 2.8% concluding that, for example in October 2021, labour costs contributed 2.3% to the year-on-year change in the HNCC, with the materials component contributing 5.1%.

Source: Vidaimobiliaria

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