It costs more and more to build in Luxembourg
In Luxembourg, prices for growing to grow at a steady pace. The construction price index increased by 4.9% between April 2021 and October 2021. In other words, in one year, residential construction costs are up by 9.4%.
Price index: the highest level since 1980
In a study conducted by the Statec, which indicates that over a period of one year, costs in residential construction have increased by 9.4%.
In general, the price of construction continues to evolve at a high pace. With an increase of 4.9% between the months of April to October 2021, this represents the highest level ever since 1980 (where the annual variation was 9.7%). A growing trend, since Statec data showed last year over this same period (October 2020 – April 2021) an increase of 4.3%.
Read Salaries in the construction industry in Luxembourg, by profession
Building materials: the considerable increase
According to analyzes required by Statec, there is only one explanation for this sharp increase. It can only be explained by the consequent increase in the prices of many building materials. Wage indexation in October 2021 also caused this increase.
Read Evolution of real estate prices in Luxembourg
According to the table defined by Statec, on the rate of change in October 2021, structural work represents the trade that announces the strongest balance in the index. The 4.6% increase last October is due to the increase in labor costs. The cost of various materials and raw materials also explains this increase.
In addition, Statec analyzes the trades managing the roofing part of construction sites. The latter show an increase of 7.9%, undeniably the strongest increase by half-year comparison. In 2021, a spike in wood prices was observed, which meant that contractors had to pay an additional 14% in April 2021 compared to October 2020.
As far as price increases are concerned, we can end with another example, where builders have to pay an average of 3.8% more for a façade. But also 5.5% more for exterior carpentry for residential construction.
Read Building in Luxembourg, the solution?
Source: Statec
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