The Construction Cost Index of the City of Buenos Aires (ICCBA) showed a slowdown in January for the second consecutive month, with an increase of 1.4%, lower than the 2.1% recorded in December. This increase was below the local inflation, which reached 3.1% in the same period. In year-on-year terms, the ICCBA experienced a rise of 52.9% in January, according to data provided by the Buenos Aires Institute of Statistics and Census, reaching a total value of 23,892 points.
Labor was the component that increased the most, with a year-on-year increase of 109%, followed by general expenses with a rise of 72.7%, and materials with an increase of 27.3%. Among the construction items, various works and expenses led the increase with 102.6%, followed by preliminary works and excavations with 80.8%, and plastering and ceilings with 73%. Other costs such as glass and crystals increased by 66.8%, paint by 66.3%, and masonry by 65.2%.
In the monthly analysis, labor increased by 2.7%, general expenses by 1.8%, and materials by 0.5%. These costs do not include Value Added Tax (VAT), land value, construction rights, permits, or other financial expenses. Regarding construction items, preliminary works and excavations stood out with an increase of 2.6%, while sanitary installation was the only area that showed a slight decrease of 0.7%.
As for the salary cost of construction, a rise of 2.5% was recorded in January compared to the previous month, and an annual increase of 108.7% due to collective bargaining negotiations and salary adjustments. The construction cost per square meter in the City of Buenos Aires reached an average of $1,123,620.58 in January.
