The trend of construction costs accelerating remains, mainly due to the cost of materials.
In November 2021 alone, the costs of building new housing rose 8.5%, compared to the same period in 2020, and accelerated by 1.2% compared to the rate observed in October.
According to the New Housing Construction Cost Index (ICCHN) released by the INE, the price of materials showed an increase, of 9.4%, up from 8.9% in October, and the cost of labor in Portugal rose 7.3%, up by 5.2% from the previous month.
On a quartly basis, new housing construction costs rose 1.6%. The cost of materials rose 0.8% compared to the previous month, and labour costs rose by 2.8% concluding that, for example in October 2021, labour costs contributed 2.3% to the year-on-year change in the HNCC, with the materials component contributing 5.1%.