Construction costs have risen again in Portugal, prolonging pressure on the housing market. In August this year, building a new house cost 3.8% more than in the same period in 2024, according to data released on Wednesday by the National Statistics Institute (INE).
Although this represents a slight slowdown compared to July (down 0.9 percentage points), the increase remains significant. The price of materials rose 0.9% (1.5% in the previous month), while labor costs rose 7.3% (-1.2 p.p. compared to July).
The national statistics office also reports that, in August, labor costs contributed 3.3 p.p. (3.9 p.p. in the previous month) to the year-on-year change in the ICCHN, while materials contributed 0.5 p.p. (0.8 p.p. in July).
Among the materials that most positively influenced the aggregate price change were glass and mirrors, with an increase of around 30%, and coating, insulation, and waterproofing materials and ready-mixed concrete, with an increase of around 5%.
On the other hand, bitumen and ceramic products stood out with a decline of around 10%, and PVC pipes, mild and galvanized steel sheet, steel and cast iron pipes, and plumbing fixtures with a decline of around 5%.
As for the chain variation, the monthly variation rate of the ICCHN was -0.3% in August 2025, 0.8 p.p. lower than in the previous month. Both the cost of materials and labor fell by 0.3%. Labor contributed -0.1 p.p. to the monthly change in the ICCHN, while the contribution of material prices was -0.2 p.p.
Image credits: © Ivan Bandura | Unsplash
Translated with DeepL.com (free version)
