Construction costs for new residential buildings up 12% in 2022

Just cost of ceramics increased by 60%

Construction costs for new residential buildings in Portugal last year increased by an average of 11.9%, following an average increase of 5.7% in 2021, National Statistics Institute INE announced today.

According to data, materials and labour showed average increases of 15.9% and 6.3% last year, against 6.2% and 5.1% the year before.

The cost of new home construction, in turn, was in December up 0.1% on November and up 11.5% on December 2021 – with the price of materials and the cost of labour rising 15.3% and 6.1%, respectively, said INE.

In December, prices were up 15.3% on the year before, a rate that was 0.3 of a percentage point more than in November. Labour costs increased 6.1% on the year (against a 6.5% rate in November).

The cost of materials contributed 9.0 percentage points to the year-on-year rate of change of the Construction Cost Index for New Housing (CCINH), against its 8.7-point contribution in November, while the labour component increased its contribution to 2.5 points (from 2.7 points the previous month).

Among materials that most contributed to this, INE highlights ceramic products, with year-on-year increases of around 60%.

Cement, ready-mixed concrete, wood and wood products, marble and marble products and consumption of energy products also showed year-on-year growth of more than 20%.

In December the HNCI registered a drop of 1.3% from November, with the cost of materials falling 0.4% and labour costs rising 2.6%.

The materials and labour cost components contributed -0.2 of a point and -1.1 point, respectively, to the monthly rate of change of the CCINH, as against -0.5 and 1.1 in November, in the same order.