1.4% rise in May in building costs

1.4% rise in May in building costs

This year, inflation has touched all sectors. The cost of inputs has hit hard the final cost of finished products, and the construction industry has not been the exception.

(Read: The requests that the CCI made to Petro on road infrastructure).

According to the last report of the Administrative Department of Statistics (Dane), the perspective of the different businessmen is a reality and the materials for the construction of buildings and civil works are going up.

In the case of civil works, the May report revealed that the monthly variation was 0.90%compared to April 2022.

On this, it stands out that three of the five subgroups related to construction that the study highlights were located above the national average.

The first of them was Ports, canals, dams, irrigation systems and other hydraulic works (aqueducts) (2.15%); long-distance gas pipelines, communication lines and power cables, local pipelines and cables.

and they followed related works (1.15%) and constructions in mines and industrial plants (1.13%).

On the other hand, the groups of outdoor sports constructions and other civil engineering works registered a growth of (0.88%), and highways, streets, railways and runways, bridges, elevated highways and tunnels ( 0.65%), below the national average.

housing initiations

Now, on housing, the Dane revealed that the increase was greater than in the item previous reaching up to 1.40% morecompared to April 2022.

The report highlights the category of non-residential buildings, which was above the national average (1.53%), while the class of residential buildings was below the national average (1.32%).

And it is that this increase in the cost of housing supplies is analyzed by experts who assure that at least by 2022, they will not go down.

In a report for La Haus, Yaneth Romero, audit partner and housing expert at Crowe Colombia, said this increase will affect housing prices and, in turn, It will affect people’s purchasing power.

The value of the iron and steel component rose 33.47%, once again being the input with the greatest increase. This situation has not only caused property prices to skyrocket, but has also put the start and execution of works by 2022 at risk.”, said the housing expert about it.

(Also: The construction of the Western Regiotram begins).

Despite this imminent bump in the road that the housing construction sector is undertaking, Romero emphasizes that it will end as a good year in the industry.
“Although positive growth in the sector is expected to be sustained in 2022, there are still challenges regarding the rise in prices and availability of some construction materials, as well as uncertainty about the continuity of the Social Housing Policy with the arrival of a election period,” he said.

Thus, the expert makes the call to buy housing this year since “rate increases are coming that will make money expensive, but there is still time to take advantage”, this added to the relief provided by the State.


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