The shortage of building materials is driving up home renovation prices

The current wave of inflation is in all corners and the repairs that are being made in private homes are also not excluded, since many of the materials used are becoming more and more expensive. According to the National Institute of Statistics, this type of Raw materials became 12.9% more expensive Between October 2021 and the same month this year. While prices have increased so far this year by 11.4%.

From the real estate portal Pisos.com, confirms its director of studies Ferrán Font “Not only are prices increasing but also project delivery times”. a situation he attributes to several factors: lack of available labor (National Association of Distributors of Ceramics and Building Materials, Andimac estimates staffing needs throughout 700,000 people in the construction sector) “which significantly delays these delivery times” and increases prices, not only for energy, but for building materials.

Asked if this is the right time to go into reform, given all of the above, Font believes that “it depends on the urgency and whether or not one can fit into the budget: Repairs that would have cost 5,000 euros a year ago can now reach 6,000 euros ». In this sense, it shows its confidence that when inflation approaches the 2% target again, the conditions for this type of movement will return to normal.

From the Employers Syndicate for Reform and Rehabilitation, IndymakIts general secretary Sebastian Molinero explains to ABC that “there are different types of businesses and mixes of materials, but without a doubt, Steel and aluminum have both experienced significant upsidesAs well as aluminum and brick ». In this sense, he speaks of increases of up to 80% in steel prices as well as more than 30% in concrete and cement due to “electricity effect” since this summer. This employers’ association reports that everything related to electrical installations is becoming less expensive, with increases estimated at an average of 23% depending on business types. “Then the business weighs in, which is up between 2.5% and 3% on average,” he adds.

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When asked about the future, Molinero recalls that the repair sector ‘She’s been losing steam since 2019’ Then it suffered a “stop” in the first confinement due to Covid-19, to later face a “demand shock” in 2021 that portends a return this year to the average growth in other years. “Return to average will now be an above average decline, since June we have recorded a decrease in sales and units installed,” acknowledges an Animac representative who warns of ‘mirage of inflation’ Although the numbers are growing, they are not spreading because they are operating with narrower margins. And he warns that “the repair sector is closely linked to consumer activity, as it depends on the elements of household spending.” In any case, it does indicate “much less dynamism, with a clear trend in the traditional market of losing strength” although there is a light at the end of the tunnel: European funds.

An attractive alternative: European funds

They remember from this employers’ association that there is an alternative available to citizens: New European funds next generation, which is considering about 1,500 million euros to promote the rehabilitation of buildings and, incidentally, improve the energy certification of the aging housing stock in Spain. Currently about 80% have low power quality (“F” or “G” rating). It also means energy savings and the ability to rent or sell these apartments when future European standards stress this region on the green transition path.

One of the most symbolic cases is the change of windows, with the help of which it is included in Royal Decree Law 19/2021 To improve the energy efficiency of housing in Spain. These supports are limited to replacing windows in the usual residence or those intended for the rental of the usual accommodation. There are two types: Direct grant and the tax cuts. Both are compatible and depending on factors such as budget and scope of work, assistance can account for up to half of the investment.

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