ACR: Construction Costs Rise by 10.3% in 2018

28 November 2018 – Eje Prime

Construction, at the price of gold. The costs relating to residential construction increased by 10.3% in 2018, according to the second edition of the Direct Construction Costs Index published by the ACR group.

In this way, the upward trend that started in 2015 is continuing, mainly due to the exponential rise in the cost of labour and the slight upturn in the price of materials. The data provided by the property developer reflects significant growth in the most representative items of buildings such as, for example, the façades, internal divisions and structure.

For Michel Elizalde, CEO of the ACR Group, “the sector must react to this reality and look for solutions that help to alleviate the effects of such a volatile scenario”. According to the executive, the solution involves “finding more collaborative contractual formulae with clients; seeking more stable relationship frameworks; embarking on training so that professionals are prepared; and taking determined steps towards the industrialisation of components and processes”.

Original story: Eje Prime 

Translation: Carmel Drake