Construction prices rose by 6.8% between April and October 2022, according to the latest figures from Statec. This is a slower development than in the previous six months (+8.6% between October 2021 and April 2022). However, in annual comparison, they have increased by 15.9%, the highest variation since 1975. The cause, unsurprisingly, is the rise in energy and material costs.
Structural work has the greatest impact (+37%) compared to the other trades. The increase in prices was 5.2% over 6 months and 14.9% year-on-year. “Earthworks (+5.4%), but also transport costs have been strongly affected by the recent increase in the price of diesel. The increase in the price of various building materials used in masonry, in particular cement and its derivatives, has again fuelled prices in structural work, while the prices of other products, in particular iron reinforcements, have nevertheless tended to fall,” Statec said.
+9.5% in building closures
But it is in the building closure sector that prices are increasing the most: by 9.5% over six months and by 18.6% over one year. This sector includes “windows with sun protection devices, garage doors and facades.” The increase in the cost of insulating materials, glazing, aluminium and transport costs explain this development.
For roofing work, the price increase was limited to 4.7% in the first half of the year and 14% over one year. The smaller increase--or even decline in some cases--in the price of wood led to the stabilisation of the price of wooden frames (+0.4%), which had been strongly affected in 2021 (+29.8% between 2020 and 2021).
The bill for technical installations climbed by 6.6% between April and October 2022 and by 14.3% between October 2021 and 2022. “While all trades are affected, whether sanitary installations (+5.5%) or heating/ventilation (+5.3%), the prices of electrical installations (+9.3%) stand out.”
Construction prices are also being boosted by those of the completion sector, which have grown by 8.1% in six months and by 17.8% in 12 months.
This story was first published in French on . It has been translated and edited for Delano.