The construction sector has shown dynamism and resilience throughout the pandemic, but is facing a worsening in costs, due to the scarcity of raw materials and labour, according to a report by idealista/news.

According to INE estimates, new housing construction costs increased by 7.2% year-on-year in January, 0.2 percentage point more (p.p.) than in the previous month. “Material prices increased by 9.1% (8.2% in the previous month) and the cost of labour increased by 4.5% (5.2% in December)”, reveals the institute.

According to the INE note, “the cost of materials contributed 5.3 p.p. for the formation of the year-on-year rate of change of the New Housing Construction Cost Index (4.8 p.p. in December) and the labour component contributed with 1.9 p.p. (2.2 percentage p.p. in the previous month)”.

“Among the materials that most contributed to this evolution are steels, ceramic products, diesel and wood and wood derivatives, all with year-on-year growth of over 20%”, the document reads.