Building a house costs 10% to 15% more than three months ago

The rise in electricity prices and the economic fallout from the invasion of Ukraine have exacerbated a problem that has plagued the construction industry since the pandemic, and that is none other than the increase in raw materials It is clear that the scarcity and the price increase affects the end consumer

In an inflationary context, the price of reinforced iron, one of the most widely 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 housing now costs between 10% and 15% more than two or three months ago and that the largest increase has occurred in the past month.

According to Alfredo Pozueta, manager of Construcciones y Promociones Sukia, in “Boulevard” by Radio Euskadic“We are getting rate increases and difficulties from our unions and suppliers on a weekly basis to maintain prices.

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

This situation forces many initiators to stop the start of some works. “There are constructions where the developer has returned the signal,” said Alvaro Unamuno, manager of Construcciones Adolfo Sobrino.

The biggest problem, however, is in the works that are already in an advanced state and that have concluded contracts. The promoters have no choice but to take the raise and take on the extra costs of moving forward.

From the construction companies, they send a rest message to the customers 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.