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Construction: the cost per square meter was on the verge of a million pesos - Infobae
Source:
www.infobae.com
January 17, 2024
In the last three months of the year, the price of materials and labor rose at a faster rate than general inflation
By Mariano Zalazar
The increase in the cost of m2 of construction responds to very marked increases in practically all areas
Building in Argentina already costs almost a million pesos per square meter. According to a report prepared by the Association of Construction SMEs of the Province of Buenos Aires (Apymeco), building one m2 requires an investment of $962,307, 47, without taking into account VAT on labor (10.5%) or materials (21%).
The study also does not consider the impact of the land, the costs of the legal figure of the venture or the benefit of the developer, in the event that a construction company intervenes. Taking all these parameters into account, it is deduced that in reality the cost per m2 has already greatly exceeded the barrier of one million pesos.
Furthermore, it should be considered that the data does not include the price increases that were recorded during the first two weeks of this month, so it would not be illogical to think that even without including VAT, today the m2 costs more than $962 thousand.
Outside of this, there are several interesting points to analyze in relation to costs. According to the Apymeco report, the value of m2 increased 29.81% in the last month (from November to December) and registered an increase of 264.5% in the accumulated amount for all of 2023.
Both in the monthly and annual variation, these are the highest increases since the end of hyperinflation.
Portland cement increased 12% during December
Then, very even increases were observed in materials (35.39%), general expenses (32.17%), the execution price (30.58%) and the construction company's profit (30.58%). December was not a month with particularly high increases for labor, but this item still rose 11.97%, according to the entity's study.
Specifically regarding materials, there were some products that had considerably high increases, with increases well above the average. Examples include sheet metal carpentry, which became more expensive by 111%, vehicle ramps (97.4%) and elevators (68.9%).
At the other extreme, the materials with the lowest monthly increases were countertops (12.12%), Portland cement (12.22%) and porcelain tiles (19.80%).
After the 100% devaluation, logically the value of the m2 measured in official dollars fell. It went from exceeding the USD 1,800 line in November to falling to USD 1,120.51 in December, which marked a reduction of close to 40%. This is because fewer dollars are now needed to purchase the same materials and services.
The price per square meter
On the other hand, the value of m2 measured at the blue value rose to USD 851.60, the highest value in all of 2023. With this, the gap between both measurements of m2 (official dollar and free dollar) was reduced to only 31%, a relatively low value, taking into account that both measurements led to differences greater than 100% for much of the year.
Of course, when purchasing, there are many materials that are quoted at an intermediate value (between the parallel and the official), making it difficult to calculate the budget for each work in advance. What is clear is that you should already think about at least one million pesos per m2.
Source:
Construcción: el costo del metro cuadrado quedó al borde del millón de pesos
En los últimos tres meses del año el precio de los materiales y la mano de obra subieron a mayor ritmo que la inflación general
www.infobae.com
January 17, 2024
In the last three months of the year, the price of materials and labor rose at a faster rate than general inflation
By Mariano Zalazar
The increase in the cost of m2 of construction responds to very marked increases in practically all areas
Building in Argentina already costs almost a million pesos per square meter. According to a report prepared by the Association of Construction SMEs of the Province of Buenos Aires (Apymeco), building one m2 requires an investment of $962,307, 47, without taking into account VAT on labor (10.5%) or materials (21%).
The study also does not consider the impact of the land, the costs of the legal figure of the venture or the benefit of the developer, in the event that a construction company intervenes. Taking all these parameters into account, it is deduced that in reality the cost per m2 has already greatly exceeded the barrier of one million pesos.
Furthermore, it should be considered that the data does not include the price increases that were recorded during the first two weeks of this month, so it would not be illogical to think that even without including VAT, today the m2 costs more than $962 thousand.
Outside of this, there are several interesting points to analyze in relation to costs. According to the Apymeco report, the value of m2 increased 29.81% in the last month (from November to December) and registered an increase of 264.5% in the accumulated amount for all of 2023.
Both in the monthly and annual variation, these are the highest increases since the end of hyperinflation.
What rose the most in December
According to the study carried out by Apymeco, the increase in the cost of m2 of construction responds to very marked increases in practically all measurement items. What increased the most in the last month of last year was the “third party provision” service, which registered an increase of 53.04%.Portland cement increased 12% during December
Then, very even increases were observed in materials (35.39%), general expenses (32.17%), the execution price (30.58%) and the construction company's profit (30.58%). December was not a month with particularly high increases for labor, but this item still rose 11.97%, according to the entity's study.
Specifically regarding materials, there were some products that had considerably high increases, with increases well above the average. Examples include sheet metal carpentry, which became more expensive by 111%, vehicle ramps (97.4%) and elevators (68.9%).
At the other extreme, the materials with the lowest monthly increases were countertops (12.12%), Portland cement (12.22%) and porcelain tiles (19.80%).
Smaller gap in dollars
Apymeco measures the cost per m2 on a monthly basis in three different ways: in pesos, in the official dollar and in the blue value. The results have already been analyzed in the local currency, now it remains to evaluate the evolution with the two exchange rates of the North American currency.After the 100% devaluation, logically the value of the m2 measured in official dollars fell. It went from exceeding the USD 1,800 line in November to falling to USD 1,120.51 in December, which marked a reduction of close to 40%. This is because fewer dollars are now needed to purchase the same materials and services.
The price per square meter
On the other hand, the value of m2 measured at the blue value rose to USD 851.60, the highest value in all of 2023. With this, the gap between both measurements of m2 (official dollar and free dollar) was reduced to only 31%, a relatively low value, taking into account that both measurements led to differences greater than 100% for much of the year.
Of course, when purchasing, there are many materials that are quoted at an intermediate value (between the parallel and the official), making it difficult to calculate the budget for each work in advance. What is clear is that you should already think about at least one million pesos per m2.
