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The construction price index continues to rise: over one year, Statec notes that prices in residential construction have risen by more than 15% in Luxembourg. The increase in the cost of energy, many building materials and the repercussion of this on the building owners contribute the most to this new substantial increase.
Building in Luxembourg is more and more expensive. Statec revealed this Monday morning the construction price index in the country, which increased by 6.8% between April and October 2022, marking a slight slowdown compared to the previous semester (+8.6 % between October 2021 and April 2022). If this fall is rather good news, over one year, the situation is different: prices in residential construction have jumped by more than 15.9%.
The statistics institute even points out that the “annual rate of change has reached its highest level since April 1975”. Over one year, flooring saw the biggest price increase, with a 26.2% increase. Then follow interior carpentry and locksmithing, with +20% in one year, but also electrical installations (+18.9%) and elevators (+18.1%).
The price of wood stabilizes
At the half-yearly level, structural work represents the trades with the highest weighting in the index, with a half-year increase of 5.3%, lower than the general index (+6.8%). .
Earthworks (+5.4%), but also transport costs were strongly impacted by the recent surge in the price of diesel. The increase in the cost of various construction materials used in masonry, in particular that of cement and its derivatives, once again fueled prices in structural work.
For roofing work, the rise in prices was limited to 4.7% over half a year. The price increases of certain insulation, sealing and finishing products for flat roofs, but also the prices of zinc work, tiles and roof windows are at the origin of this sustained development.
Insulation materials cost more
The less significant increase, or even the decline in some cases, in the price of wood led to the stabilization of the price of wooden structures (+0.4%), which had however been strongly affected in 2021 (+29.8% between 2020 and 2021).
The closing of the building, which includes windows with solar protection devices, garage doors and facades, is the trade with the strongest half-year increase (+9.5%). The increase in the price of insulating materials has caused the bill for facade work to rise by 9.5% in one semester, while clients have to pay 9.4% more for the exterior carpentry of a building. residential.
The soaring prices of certain materials, such as glazing and aluminum, but also the increase in the cost of transporting supplies are at the origin of this exceptional development.