Construction Costs Up by 7.1% In September

Construction costs were 0.4 percentage points higher compared to the month before.

According to the National Statistics Institute’s New Housing Construction Costs Index (ICCHN), construction costs for new housing increased by 7.1% year-on-year in September, up 0.4 percentage points from August.

The analysis added that the materials prices and labour costs rose by 8.9% (8.7% in the previous month) and 4.6% (4.0% in August) respectively year-on-year.

Labour costs contributed 2.0 p.p. to the ICCHN, while materials contributed 5.1%.

The monthly increase in the New Housing Construction Cost Index stood at 0.1% in September. The cost of materials decreased by 0.2%, and the cost of labour increased 0.5%.

According to INE, the labour and materials components contributed 0.2 and -0.1 p.p. respectively to the index for the month.