According to INE data, the price of materials and the cost of labour showed, respectively, year-on-year changes of 10.4% and 12.4%.

In January 2023, the year-on-year change in the New Housing Construction Cost Index (ICCHN) stood at 11.2%, a rate higher by 0.3 p.p. to that observed in December 2022. Material prices increased by 10.4%, decelerating by 3.7 p.p. compared to the previous month and the cost of labour increased by 12.4% (6.7% in December 2022).

"It should be noted that the significant increase in the cost of labour cannot be dissociated from the increase in the minimum wage (7.8%) in January 2023", says INE.