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Construction costs in Buenos Aires City rose 2% and accumulated 43.9% in the last twelve months - Infobae
Source:
www.infobae.com
March 19, 2025
This was revealed by the Buenos Aires City Government's Institute of Statistics and Census. According to INDEC, the increase in the province of Buenos Aires was similar
By Jose Luis Cieri
Labor led the increases with a year-over-year rise of 90.9%, followed by general expenses and materials in CABA (Illustrative Image Infobae)
The Buenos Aires City Construction Cost Index (ICCBA) registered a 2% increase in its overall level during February 2025, according to provisional data reported by the Institute of Statistics and Census of the Autonomous City of Buenos Aires (IDECBA).
This indicator, which measures monthly variations in costs associated with the construction of residential buildings, continues its upward trend, accumulating a 43.9% year-over-year increase.
While the National Institute of Statistics and Census (INDEC) reported the trend at the Buenos Aires province level, the figures are similar: 2.3% month-on-month but 60.7% year-on-year.
Both surveys confirmed that building prices, by maintaining their upward momentum, impact final home prices.
Materials , for their part, increased by 21.1% over the same period. Considering February alone, materials increased by 1.9%, labor by 2.3%, and overhead by 0.9%, figures that demonstrate the growing weight of wages in total construction costs .
The cost per square meter was highest in “unit type IV” (luxurious housing) at $1,372,575.94, while “unit type II” (housing with commercial premises) cost 1,070,609.07 pesos.
Although several products showed moderate increases, some exhibited negative variations. Stainless steel sheet metal, for example, experienced a year-over-year drop of -4% , something unusual in the context of inflation and widespread cost increases.
In monthly terms, the salary increase was 2.1% compared to January. However, the figures highlight that salary costs have accumulated growth of more than 200% at certain points during the period analyzed, especially in conjunction with the approval of the new agreements reached in 2024.
This increase is comprised of increases of 1.9% in the "Materials" section, 2.7% in "Labor," and 2.1% in "General Expenses." These figures reflect the variations in the cost of private construction in the region, which includes 24 districts in the Greater Buenos Aires area.
One of the main factors behind the increase in the "Labor" section was the implementation of the salary agreement signed on February 14 by the UOCRA, subsequently approved on February 21.
This agreement included revised rates for the various job categories established in Collective Bargaining Agreement 76/75 and an extraordinary allowance, which also impacted "General Expenses" in areas such as the salary of security guards.
Source: National Institute of Statistics and Census (INDEC)
Within the "General Expenses" chapter, adjusted rates were also incorporated according to resolutions of the National Electricity Regulatory Entity (ENRE), corresponding to the distributors Edenor and Edesur, within the framework of comprehensive tariff reviews.
Updates were also made to the consumption and water and sewage connection rates authorized by the Ministry of Public Works, as well as adjustments to gas connection costs established by the regulatory body ENARGAS. According to the data provided, this factor contributed 0.22% to the overall variation in the index.
The “Materials” section showed increases in key inputs such as bricks and ceramics (+9.5%), copper, lead and tin products (+3.8%), and aggregates (+3.4%), while some materials, such as carpet flooring (-2.7%) and firefighting equipment (-1.0%), decreased.
The largest monthly increases in construction were seen in masonry and earthworks (+3.1%), followed by structural works (+2.5%) and plumbing and fire protection (+2.4%). The smallest increases were in plasterwork (+0.3%) and painting (+0.2%), with no change in metalwork and ironwork.
The annual variation in the ICC rose 60.7%, with a 113.2% increase in "Labor" due to salary agreements and regulatory updates. General expenses grew 67.4% and materials grew 26.3%.
Regarding construction models, multi-family housing increased by 2.8% monthly, while single-family housing increased by 2.6%. These increases do not include land values or administrative costs.
Construction-related rentals also increased, with container rentals (up 9.6%) and dump trucks (up 8.1%) particularly strong, while other services such as backhoes increased by between 3.1% and 2.3%.
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Source:
El costo de la construcción en CABA subió 2% y acumuló 43,9% en los últimos doce meses
Así lo reveló el Instituto de Estadística y Censos del Gobierno porteño. Según el INDEC, el aumento en la provincia de Buenos Aires fue similar
www.infobae.com
March 19, 2025
This was revealed by the Buenos Aires City Government's Institute of Statistics and Census. According to INDEC, the increase in the province of Buenos Aires was similar
By Jose Luis Cieri
Labor led the increases with a year-over-year rise of 90.9%, followed by general expenses and materials in CABA (Illustrative Image Infobae)
The Buenos Aires City Construction Cost Index (ICCBA) registered a 2% increase in its overall level during February 2025, according to provisional data reported by the Institute of Statistics and Census of the Autonomous City of Buenos Aires (IDECBA).
This indicator, which measures monthly variations in costs associated with the construction of residential buildings, continues its upward trend, accumulating a 43.9% year-over-year increase.
While the National Institute of Statistics and Census (INDEC) reported the trend at the Buenos Aires province level, the figures are similar: 2.3% month-on-month but 60.7% year-on-year.
Both surveys confirmed that building prices, by maintaining their upward momentum, impact final home prices.
In CABA
Among the components of the Buenos Aires index, the item with the greatest impact was labor , with a year-over-year increase of 90.9 percent, followed by general expenses with 60.4 percent.Materials , for their part, increased by 21.1% over the same period. Considering February alone, materials increased by 1.9%, labor by 2.3%, and overhead by 0.9%, figures that demonstrate the growing weight of wages in total construction costs .
Models and costs per square meter
IDECBA's analysis of the cost per square meter based on representative housing models shows significant values in Argentine pesos. Thus, the average cost in February reached $1,153,881.59 for the entire city, with differences depending on the type of housing.
The cost per square meter was highest in “unit type IV” (luxurious housing) at $1,372,575.94, while “unit type II” (housing with commercial premises) cost 1,070,609.07 pesos.
Input and material indexes
The Construction Inputs Index (CII) , which analyzes the price evolution of 117 specific products and services, showed upward variations in most materials. For example, load-bearing hollow bricks saw a notable monthly increase of 26.4% , while inputs such as Portland cement and asphalt membranes rose 2.1% and 1.2% , respectively. On a year-on-year basis, the 73% increase in domestic wooden beams and the 44.7% increase in demolition debris were notable.Although several products showed moderate increases, some exhibited negative variations. Stainless steel sheet metal, for example, experienced a year-over-year drop of -4% , something unusual in the context of inflation and widespread cost increases.
The role of wage costs
The Construction Wage Cost (CSC) showed a cumulative increase of 90.3% in February 2025 compared to the same month the previous year. This index considers the salaries of a typical team, composed of officers, assistants, and other workers, including benefits such as employer contributions, clothing, and special compensation negotiated with the Construction Workers' Union of the Argentine Republic (UOCRA). The impact of collective bargaining agreements continues to be a key driver of cost increases, particularly reflected in the labor component of the ICCBA (Construction Workers' Union).
In monthly terms, the salary increase was 2.1% compared to January. However, the figures highlight that salary costs have accumulated growth of more than 200% at certain points during the period analyzed, especially in conjunction with the approval of the new agreements reached in 2024.
In the GBA
The Construction Cost Index (CCI) in Greater Buenos Aires registered a 2.3% increase in February 2025 compared to the previous month, according to the National Institute of Statistics and Census (INDEC).This increase is comprised of increases of 1.9% in the "Materials" section, 2.7% in "Labor," and 2.1% in "General Expenses." These figures reflect the variations in the cost of private construction in the region, which includes 24 districts in the Greater Buenos Aires area.
One of the main factors behind the increase in the "Labor" section was the implementation of the salary agreement signed on February 14 by the UOCRA, subsequently approved on February 21.
This agreement included revised rates for the various job categories established in Collective Bargaining Agreement 76/75 and an extraordinary allowance, which also impacted "General Expenses" in areas such as the salary of security guards.
Source: National Institute of Statistics and Census (INDEC)
Within the "General Expenses" chapter, adjusted rates were also incorporated according to resolutions of the National Electricity Regulatory Entity (ENRE), corresponding to the distributors Edenor and Edesur, within the framework of comprehensive tariff reviews.
Updates were also made to the consumption and water and sewage connection rates authorized by the Ministry of Public Works, as well as adjustments to gas connection costs established by the regulatory body ENARGAS. According to the data provided, this factor contributed 0.22% to the overall variation in the index.
The “Materials” section showed increases in key inputs such as bricks and ceramics (+9.5%), copper, lead and tin products (+3.8%), and aggregates (+3.4%), while some materials, such as carpet flooring (-2.7%) and firefighting equipment (-1.0%), decreased.
The largest monthly increases in construction were seen in masonry and earthworks (+3.1%), followed by structural works (+2.5%) and plumbing and fire protection (+2.4%). The smallest increases were in plasterwork (+0.3%) and painting (+0.2%), with no change in metalwork and ironwork.
The annual variation in the ICC rose 60.7%, with a 113.2% increase in "Labor" due to salary agreements and regulatory updates. General expenses grew 67.4% and materials grew 26.3%.
Regarding construction models, multi-family housing increased by 2.8% monthly, while single-family housing increased by 2.6%. These increases do not include land values or administrative costs.
Construction-related rentals also increased, with container rentals (up 9.6%) and dump trucks (up 8.1%) particularly strong, while other services such as backhoes increased by between 3.1% and 2.3%.
www.buysellba.com
