Housing construction becomes more expensive between 10% and 15% in the last three months

The increase in the price of electricity and the economic consequences of the invasion of Ukraine have exacerbated a problem that has already dragged on the construction sector since the pandemic, and which is none other than the rise in raw materials. It is evident that the scarcity and the increase in price affects the final consumer.

In an inflationary context, the price of reinforced iron, one of the most used materials in the construction sector, has increased by 50% in recent months and that of brick by 40%.

This increase makes public and private works more expensive. The promoters estimate that the home construction now costs between 10% and 15% more than two or three months ago and that the greatest increase has occurred in the last month.

According to Alfredo Pozueta, manager of Construcciones y Promociones Sukia, in “Boulevard” of Radio Euskadi“week after week we receive rate increases and difficulties from our unions and suppliers to sustain prices.

Juan Antonio Giménez Quintana, manager of Jicasa construction materials explains that they are informed of price increases from one day to the next. “We have gone from increases of between 3 and 5% to 15 and 20% and even 35% in some cases”, he assured.

This situation is forcing many promoters to stop the start of some works. “There are constructions in which the developer has returned the signal,” said Alvaro Unamuno, manager of Construcciones Adolfo Sobrino.

However, the biggest problem is found in the works that are already in an advanced situation and that have closed contracts. The promoters have no choice but to assume the increase and assume the extra cost to move forward.

From the construction companies they send a message of tranquility to the clients who have already signed the purchase of a home, but they do not know how long the real estate sector will be able to endure this situation.