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Construction supplies sales are recovering: how much does a square meter cost today? - Infobae
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www.infobae.com
March 12, 2025
After record-breaking increases through mid-2024, construction costs are showing greater stability. What to expect in the coming months
By Jose Luis Cieri
After a six-month period of decline, the construction sector is showing signs of recovery with an increase in sales of inputs and a stabilization in costs (Illustrative Image Infobae)
After a six-month period of decline, the construction sector is showing signs of recovery with an increase in sales of inputs and stabilizing costs.
While values have seen rapid increases in previous months (at least until last August), market dynamics are beginning to shift, and a key question arises: Will stability continue or will the upward trend resume?
The Construya Index (IC), which measures the evolution of the volume of construction products sold to the private sector, registered a seasonally adjusted monthly increase of 6.92% in February, standing 4% above the level of February 2024. Thus, in the cumulative first two months of 2025, growth was 1.6% compared to the same period of the previous year.
The Construya Group emphasized that this improvement could mark the beginning of a more sustained recovery. "Construction materials sales during February suggest a slight improvement. We hope this continues and that the sector begins to grow," they stated.
The index (see chart below) measures the performance of materials such as ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastes, waterproofing paints, sanitary ware, boilers and heating systems, faucets, water and gas systems, flooring, ceramic coverings, and electrical materials.
Pedro Brandi , president of the Construya Group, explained that trends should be analyzed over a broader horizon, as seasonal factors affect market dynamics.
“The index's performance showed stability until the change of government. It then declined, recovered, and then fell again. It's important to keep in mind that the market is made up of several players, and retailers manage their stocks to supply their customers while protecting their working capital. There's natural speculation about how prices will behave. Currently, retailers believe prices will either not rise or fall,” he said.
Asked about the 6.92% increase in sales of supplies, Brandi explained that perishable materials such as cement are less speculative, which led to greater stock replenishment after the holiday break.
"The increased sales are likely due to restocking inventory as construction activity resumes after the holiday break. Demand for materials as a whole remains stable and increased 1.6% in the first two months compared to the previous year," he stated.
Santiago Levrio , institutional director of Alianza Urbana, explained that cost behavior is not uniform. Labor continues to gradually recover from the low reached in January 2024. Regarding materials, three trends are observed: those used for structures remain stable, those used for rough construction with installations show a slight increase, while those used for finishing have shown a sustained decline in recent months. Overall, construction costs in dollars remain stable, although in pesos they continue to rise, but below inflation.
Regarding the evolution of materials, Levrio explained that raw materials, such as bricks, plaster, and cement products, saw the largest increases among leading brands, as manufacturers seek to maintain their profitability in a context where these inputs are difficult to import. In contrast, finishing materials are experiencing significant declines due to trade liberalization, which has generated greater supply in the market.
Regarding the price per square meter in dollars, which exceeded USD 1,600 in February, Levrio indicated that prices vary depending on the type and quality of construction, but average around USD 1,500 per habitable square meter. "We see stability in the sector, and no sudden changes are expected in the short term," he stated.
Even with rising costs, construction continues at a good pace. Some have slowed down, but they are still ongoing.
When asked about when construction costs in the city might ease, Levrio said they are currently stable, both in terms of inflation and in dollars. "The rapid and violent previous rise means this stability is not yet clearly visible. Furthermore, there remains a wide dispersion between brands, making it difficult to establish an average."
Factors such as the purchasing format and payment terms also play a role, "since today it's more convenient to plan large purchases with financing rather than stockpiling materials, where setting prices doesn't always guarantee the best terms," Levrio explained.
Source: Association of SMEs in the Construction Industry of the Province of Buenos Aires (Apymeco)
The value per square meter of construction was $1,680,600.98, while in dollars it was USD 1,383.21, representing a 2.17% increase compared to January.
Gustavo Serafín Marín , president of Apymeco, noted that the main factor driving the increase in costs in February was labor, which rose 4.18% due to the impact of the sector's collective bargaining agreement. "The year-on-year variation in the general index showed a 44.66% increase, the lowest value since February 2022," he indicated.
Regarding inputs, the largest monthly increases were recorded in elevators (14.55%), hollow bricks (4.34%), and lumber (4%). On the other hand, some products registered declines, such as water heaters (-10.06%), concrete pumps (-6.98%), and air conditioning pre-installation (-6.41%).
Serafín Marín also highlighted that macroeconomic stability and the reduction in inflation have moderated cost increases in the sector. "Macroeconomic stability and the drop in inflation have led to a downward trend in construction costs, a situation reflected in the year-over-year trend of the general index, which has been trending downward since March 2024," he said.
Source: Association of SMEs in the Construction Industry of the Province of Buenos Aires (Apymeco)
The construction market is going through a period of transition, with signs of recovery in input sales and a slowdown in costs.
Serafín Marín concluded: "Although activity remains subject to multiple factors, price stability and greater economic predictability could create a more favorable environment for the sector in the coming months."
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Source:
Se recupera la venta de insumos para construir: cuánto cuesta hoy el metro cuadrado
Tras fuertes aumentos en tiempo récord hasta mitad de 2024, los costos de construcción muestran mayor estabilidad. Qué se espera para los próximos meses
www.infobae.com
March 12, 2025
After record-breaking increases through mid-2024, construction costs are showing greater stability. What to expect in the coming months
By Jose Luis Cieri
After a six-month period of decline, the construction sector is showing signs of recovery with an increase in sales of inputs and a stabilization in costs (Illustrative Image Infobae)
After a six-month period of decline, the construction sector is showing signs of recovery with an increase in sales of inputs and stabilizing costs.
While values have seen rapid increases in previous months (at least until last August), market dynamics are beginning to shift, and a key question arises: Will stability continue or will the upward trend resume?
The Construya Index (IC), which measures the evolution of the volume of construction products sold to the private sector, registered a seasonally adjusted monthly increase of 6.92% in February, standing 4% above the level of February 2024. Thus, in the cumulative first two months of 2025, growth was 1.6% compared to the same period of the previous year.
The Construya Group emphasized that this improvement could mark the beginning of a more sustained recovery. "Construction materials sales during February suggest a slight improvement. We hope this continues and that the sector begins to grow," they stated.
The index (see chart below) measures the performance of materials such as ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastes, waterproofing paints, sanitary ware, boilers and heating systems, faucets, water and gas systems, flooring, ceramic coverings, and electrical materials.
Pedro Brandi , president of the Construya Group, explained that trends should be analyzed over a broader horizon, as seasonal factors affect market dynamics.
“The index's performance showed stability until the change of government. It then declined, recovered, and then fell again. It's important to keep in mind that the market is made up of several players, and retailers manage their stocks to supply their customers while protecting their working capital. There's natural speculation about how prices will behave. Currently, retailers believe prices will either not rise or fall,” he said.
Asked about the 6.92% increase in sales of supplies, Brandi explained that perishable materials such as cement are less speculative, which led to greater stock replenishment after the holiday break.
"The increased sales are likely due to restocking inventory as construction activity resumes after the holiday break. Demand for materials as a whole remains stable and increased 1.6% in the first two months compared to the previous year," he stated.
How much does it cost to build a square meter?
Even with increases and decreases in costs and sales, depending on the month of the year, more than 50,000 homes in the city of Buenos Aires remain under construction.Santiago Levrio , institutional director of Alianza Urbana, explained that cost behavior is not uniform. Labor continues to gradually recover from the low reached in January 2024. Regarding materials, three trends are observed: those used for structures remain stable, those used for rough construction with installations show a slight increase, while those used for finishing have shown a sustained decline in recent months. Overall, construction costs in dollars remain stable, although in pesos they continue to rise, but below inflation.
Regarding the evolution of materials, Levrio explained that raw materials, such as bricks, plaster, and cement products, saw the largest increases among leading brands, as manufacturers seek to maintain their profitability in a context where these inputs are difficult to import. In contrast, finishing materials are experiencing significant declines due to trade liberalization, which has generated greater supply in the market.
Regarding the price per square meter in dollars, which exceeded USD 1,600 in February, Levrio indicated that prices vary depending on the type and quality of construction, but average around USD 1,500 per habitable square meter. "We see stability in the sector, and no sudden changes are expected in the short term," he stated.
Even with rising costs, construction continues at a good pace. Some have slowed down, but they are still ongoing.
When asked about when construction costs in the city might ease, Levrio said they are currently stable, both in terms of inflation and in dollars. "The rapid and violent previous rise means this stability is not yet clearly visible. Furthermore, there remains a wide dispersion between brands, making it difficult to establish an average."
Factors such as the purchasing format and payment terms also play a role, "since today it's more convenient to plan large purchases with financing rather than stockpiling materials, where setting prices doesn't always guarantee the best terms," Levrio explained.
Buenos Aires costs
For its part, the report by the Association of SMEs in the Construction Industry of the Province of Buenos Aires (Apymeco) highlighted that the construction cost index reached a monthly variation of 3.45% in February and a year-over-year increase of 44.66%.
Source: Association of SMEs in the Construction Industry of the Province of Buenos Aires (Apymeco)
The value per square meter of construction was $1,680,600.98, while in dollars it was USD 1,383.21, representing a 2.17% increase compared to January.
Gustavo Serafín Marín , president of Apymeco, noted that the main factor driving the increase in costs in February was labor, which rose 4.18% due to the impact of the sector's collective bargaining agreement. "The year-on-year variation in the general index showed a 44.66% increase, the lowest value since February 2022," he indicated.
Regarding inputs, the largest monthly increases were recorded in elevators (14.55%), hollow bricks (4.34%), and lumber (4%). On the other hand, some products registered declines, such as water heaters (-10.06%), concrete pumps (-6.98%), and air conditioning pre-installation (-6.41%).
Serafín Marín also highlighted that macroeconomic stability and the reduction in inflation have moderated cost increases in the sector. "Macroeconomic stability and the drop in inflation have led to a downward trend in construction costs, a situation reflected in the year-over-year trend of the general index, which has been trending downward since March 2024," he said.
Source: Association of SMEs in the Construction Industry of the Province of Buenos Aires (Apymeco)
The construction market is going through a period of transition, with signs of recovery in input sales and a slowdown in costs.
Serafín Marín concluded: "Although activity remains subject to multiple factors, price stability and greater economic predictability could create a more favorable environment for the sector in the coming months."
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