Costa Rica Construction Materials Prices Rise in 2014

The average cost of the basic materials to build homes accelerated this year.

This is reflected in the price index of social housing which the National Institute of Statistics and Censuses (NISC) calculates.

This indicator, that considers 32 materials that are used directly in this type of work, fell between June of 2013 and February of 2014 (compared to each month with the same period last year), but then picked up momentum.

In September of this year, the average cost was 7% higher with respect to the result of the same month of 2013.

This indicator does not include the costs to construct a house of social interest and doesn’t reflect the costs for regular work; however, it launches some signs and allows the evolution in the prices of some important materials to be seen.

Considering the six most important materials, because they weigh more in the cost of the work, have risen more, between September of 2013 and September of 2014, are: number 4 rods, blocks, and galvanized iron roof.

Electrical installation still records a low (compared with the same period of last year), but shrinking.

Causes.

Rosendo Pujol – Housing Minister and Chairman and the Housing Mortgage Bank, explained that there are many factors that influence this market as it depends on the demand and supply of materials and houses.

Guillermo Carazo, President of the Chamber of Construction, summarized the causes of the increase in four elements:

“(The increases in the cost of materials) are primarily associated with four factors affecting the entire construction sector: the sharp rise in the exchange rate (in the first quarter of this year), expensive imported materials, the rise in prices of raw materials used to produce building materials, the rising cost of energy and labor,” said Carazo.

The Housing Minister added to the list of causes the price of fuel, which influences the cost of the production of some materials.

“My point is that there are product that have risen in price and other that have fallen, and I believe that the general topic is that fuel prices have been very high; there are some monopolies affecting the prices of some materials and also the high cost of electricity affects the production of cement and maybe steel bar production,” said Pujol.

In the future, Minister Pujol expects that this trend stops because since the price of oil dropped dramatically and the dollar exchange rate has stabilized, the cost of electricity should stay the same as announced.

Our thanks to our friends at La Nación – Costa Rica’s largest and most influential Spanish circulation newspaper for their permission to summarize their articles which originally appeared here.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.