Price of building a house in Portugal 2023

How much does it cost to build a house in Portugal? Figures show that building a new house is now 12.5% more expensive than a year ago. We have the details.

Construction costs in Portugal Pixabay

Editorial Team

13 January 2023, 13:35

Since March 2022, a month after Russia invaded Ukraine, the cost of building a new house in Portugal has been skyrocketing, in line with the rising inflation rate. Since then, the year-on-year rise has always been more than double digits. The final months of 2022 were no exception, with new home construction costs shooting up 12.5% in October 2022 compared to the same month in 2021, 0.8 percentage points (p.p.) less than that seen in the previous month (13.3%), according to data released by the National Statistics Institute (INE) at the end of 2022. With this in mind, how are things looking for 2023? This is what you need to know about the price of building a house in Portugal 2023.

Cost of building a house in Portugal 2022/2023

"In October, the year-on-year change in Portugal's Construction Costs Index for New Housing (ICCHN) stood at 12.5%, a rate 0.8 p.p. lower than that observed in September. Material prices increased 17.2%, decelerating 1.3 p.p. in comparison to the previous month and the cost of labour increased 5.9% (6.1% in September)," concluded INE.

According to the national statistics office, the cost of materials contributed 10.0 p.p. to the year-on-year change (10.8 p.p. in September). The labour component maintained its contribution of 2.5 p.p., as in the previous month.

Prices of ceramic products soar 70%

"Among the materials that most influenced this variation are ceramic products, with year-on-year price increases of around 70%. Cement, ready-mixed concrete, diesel, wood and wood derivatives, carpentry work, marble and marble products, cork agglomerates and tiles and the consumption of energy products showed year-on-year growth of over 20%," the note said.