New housing costs up 13.4% in July
According to data released by the INE, "in July 2022, it is estimated that the cost of new housing construction increased by 13.4% year-on-year, up 0.9 percentage points from the previous month."
New housing construction costs rose 13.4% in July, compared to the same month in 2021, with the prices of materials and the cost of labour rising 17.5% and 7.7%, Statistics Portugal (INE) said on Friday.
According to data released by the INE, “in July 2022, it is estimated that the cost of new housing construction increased by 13.4% year-on-year, up 0.9 percentage points from the previous month.”
In the month under review, INE reported that the prices of materials increased by 17.5%, accelerating by 0.9 percentage points compared to the previous month, and the cost of labour increased by 7.7% (compared to 6.8% in June).
The cost of materials contributed 10.2 percentage points to the year-on-year change in the Construction Cost Index for New Housing (HNCI), which compares with 9.7 percentage points in June, while the labour component increased its contribution to 3.2 percentage points (2.8 percentage points in the previous month).
Among the materials that most contributed to this evolution, INE highlights ceramic products, with year-on-year growth of around 70%, while diesel presented year-on-year growth above 30%.
Wood and wood products, cement, cork boards and tiles, carpentry work and PVC pipes showed year-on-year growth above 20%.
On a quarter-on-quarter basis, the monthly growth rate of the HNCI was 1.9% in July, with the cost of materials and the cost of labour increasing by 1.9% and 1.8%, respectively.
The materials and labour input components contributed 1.1 percentage points and 0.8 percentage points, respectively, to the monthly change in HNICC (-0.8 percentage points and 0.9 percentage points in June, in that order).
