Construction Costs up 2.2% Year-on-Year in February

New housing construction costs rose 2.2%, up by 0.6% compared to January.

According to an estimate published by Portugal’s National Statistics Institute (INE), the price of materials and the cost of labour posted increases of 2.7% and 1.5% year-on-year, respectively.

In February, the estimated year-on-year rate of change for the New Housing Construction Costs Index (NHCI) stood at +2.2%, up by 0.6% compared to the previous month. Material prices increased by 2.7% (2.3% in the previous month), while the cost of labour increased by 1.5% (0.5% in January).

The New Housing Construction Cost Index (NCHCI) measures the cost of constructing residential buildings in Portugal. Labour costs contributed 0.6% to the year-on-year change in the HNCI, while materials contributed 1.6%.

The National Statistics Institute also indicated that the monthly rate of change of the HNICC stood at 0.7% in February, with the cost of materials increasing by 0.4% and labour costs by 1.1%. Labour and materials contributed 0.5% and 0.2%, respectively, to the monthly growth rate.

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