Construction costs up by 1.7%
The cost of building new residential housing increased 1.7% in November 2020 compared to the same period in 2019.
This was 0.6% less, however, than in October according to estimates published by the National Statistics Institute (INE):
“In November, it was estimated that the costs of new build housing construction increased 1.7%, 0.6% less than the previous month,” states the INE’s Index of New Housing Construction Costs (ICCHN).
According to the INE, in November “the price of materials went up 1.3% (just like in the previous month), and the cost of manpower increased 2.3% in November (3.8% in October).”
For the total like-for-like variation rate for the index, the cost of manpower contributed with 1% while the building materials component contributed by +0.7%.
Regarding the previous month (chain variation), “The ICCHN monthly variation rate was 0.6% in November,” with an increase in the cost of materials of 0.4% and manpower 0.8%.
“The manpower and materials components contributed to 0.4 p.p and 0.2 p.p respectively towards working out the ICCHN monthly variation rate released on Friday 8 December.