Construction costs up 2.2%

 In Construction, News, Real Estate

Building costs continue to go up in Portugal with an increase of around 2.2% for the month of February according to the national statistics institute INE.

The increase in costs for building new housing stands at 0.6 per cent points more than in January 2021.
The cost of materials rose 2.7% (2.3% in January). The cost of building site workers increased 1.5% (it rose 0.5% in January).
The cost of manpower contributed by 0.6 percent points towards the like-for-like rate of variation complied by the Index of Construction Costs for New Housing (ICCHN), while the contribution from the rising price of building materials was 1.6 percent points.
The ICCHN monthly variation rate was 0.7% in February and the costs of materials increased 0.4%, while the cost of manpower was up by 1.1%
Despite the rising cost of construction, the Portuguese government plans to invest €2.8Bn in housing to 2026 through its Recovery and Resilience Plan (RRP) using some of the ‘bazooka’ funds from Europe to kickstart the post-Covid-19 economy.
The Government’s public housing programme aimed at housing for rent and middle class and social housing, will be rolled out over the next five years.
The Build-to Rent scheme is one of the new housing formats on the rise in the Portuguese housing market, one which should see demand skyrocket over the next few years both for investors and residents.