Construction costs rise by 27% since 2020 due to CPI and material prices, according to UVE
There has been a 3.9% increase in the cost of unit execution per contract in 2024 compared to the previous year, standing at 1,066 euros per square metre, while deviations in cost and term have remained stable.
Rising prices. The cost of construction has experienced a cumulative increase of 27.5% since 2020, a figure that reflects inflationary pressures and the evolution of material prices, according to the Promotion Barometer released this Tuesday by UVE Valoraciones.
When examining the most recent data, an increase of 3.9% in the cost of unit execution per contract in 2024 compared to the previous year is observed, standing at 1,066 euros per square metre, while deviations in cost and time have remained stable.
The average deviation in term during 2024 has been 1.32 months, practically identical to that recorded in 2023, while the average deviation in execution cost has decreased slightly to 2.4%. The sales market has also shown stability, with a similar behaviour to 2023 in terms of the percentage of homes sold per section of work executed. In developments with more than 90% of the work completed, 92.1% of the units were sold by the end of 2024.
Cooperatives stand out, with a higher sales rate than conventional development in all sections of work, as well as single-family homes, whose sales tend to be ahead of those of multi-family homes until the last phases of the project, at which time both are balanced.
The study indicates that 79% of the developments analysed are being developed by development companies, while the remaining 21% correspond to housing cooperatives or communities of property. The latter are mainly concentrated in the Community of Madrid and, to a lesser extent, in Andalusia, Aragon, Catalonia and the Basque Country.
In terms of the execution of the works, 79% of the developments are built by independent companies hired by the developer, while 11% are developed within the same business group and the remaining 10% are executed directly by the developer.
16% of the developments corresponded to social housing, characterised by a higher number of units per project (80 on average), compared to free housing developments, whose average is 39 units.
Cooperatives register a higher sales rate than conventional promotion
The report highlights an increase in the preference for three-bedroom homes in 2024, which represent 50% of the total supply, two percentage points more than the previous year. Larger developments continue to predominate, with 59% of projects exceeding 25 homes and an average of 45 units per development. The multi-family model continues to be the predominant one, with 79% of developments under this typology, which represents 92% of the homes built.
In 2024, 65% of the homes analysed have obtained the highest energy rating (letter A) in consumption, which represents an increase of seven percentage points compared to the previous year. In terms of emissions, 80% of promotions have reached the letter A, improving by eight points compared to 2023. The president of UVE Valoraciones, Germán Pérez Barrio, says that “we want to contribute to the debate on the evolution of the market and provide key information for decision-making”.
Source EjePrime
