This is the highest year-on-year figure since August 2008 (8.5%). In January, the year-on-year increase in construction costs had been 7.4%.
“In February, the estimated year-on-year change in the New Housing Construction Cost Index (ICCHN) was 8.6%, a rate 1.2 percentage points higher (p.p.) than that observed in January. Material prices increased by 10.1% (9.4% in the previous month) and the cost of labour increased by 6.4% (4.5% in January)”, reads the INE bulletin.
According to the institute, “the cost of materials contributed 5.9 p.p. for the formation of the year-on-year rate of change of the ICCHN (5.5 p.p. in January) and the labour component contributed with 2.7 p.p. (1.9 p.p. in the previous month)”.