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One of the main concerns for families is improving their home through construction, but these months, rising prices have also taken their toll on material prices. Until August this year, building materials are rising in price by 5.6%.
In terms of construction companies, the price of a house in the country could rise by 7.2% this year, according to the latest IEC Construction Report prepared by Peruvian Building Chamber (Capeco).
How much more do you pay for building materials?
The report reports a 12.74% increase in the last twelve months to July, with prices currently seeing a slight slowdown but showing at least 8.1% growth for the year.
“We are facing the problem of rising construction costs. It also has a significant impact on investment decisions,” said Guido Valdivia, chief executive of Capeco.
So the entry prices have changed.
In the first half of the year, construction grew by 1.64%, and in July activity grew by 2.4%, this boom was caused by public works, but five months later cement consumption fell again.
However, this compound this has yet to boost construction companies, which remain in the red and even warn of a 0.9% contraction this year.
“We are in a situation where almost everything has been exhausted, no new major projects are foreseen. Although there is interest in the development of projects, people are not “allowing” to invest, because there are unforeseen circumstances in business, the situation of the government and the political situation in general,” he said.
The trust of all subjects involved in this activity is different. For example, suppliers were 2.4% more pessimistic, while builders were 0.7% more pessimistic; however, those who are optimistic about the future are infrastructure builders.
As of June this year, the forecast for Capeco up 9.3% for the year. According to the Economic Report on Construction (IEC), building material prices rose by 9.1% between November 2021 and April 2022, and prices are expected to increase by 3.7% in the coming months.
“As a result, the cost households It will increase by 9.3% in the annual period from November 2021 to October 2022,” Valdivia explained.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.