Housing construction costs in Colombia rose by 4.77% in 2017, up from the 3.16% rate of increase seen in 2016, the National Administrative Department of Statistics (DANE) revealed this week.
The metric, which is measured by the federal agency’s “Housing Construction Cost Index” (ICCV), was driven largely by a 5.94% spike in labor costs and 4.38% rise in the cost of materials. Labor and material costs rose by only 4.28% and 2.73%, respectively, in 2016.
Machinery and equipment was the standout on the low-end. Related costs rose by just 2.6% in 2017, although this was higher than the 1.91% increase during the prior year.
In terms of specific housing types, construction costs jumped the most, by 4.87%, for multifamily houses. This was up considerably from the 2.88% uptick in 2016. Single-family housing construction increased by 4.62% last year versus 3.63% in 2016.
While the national rate of 4.77% was high, the change was more and less pronounced in different cities. Armenia (up 6.43%), Cali (6.00%), Manizales (5.92%), Medellín (5.90%), and Pereira (5.52%) saw the biggest increases.
On the other hand, Ibagué (2.18%), Popayán (2.51%), Santa Marta (2.55%) Cúcuta (2.64%), Barranquilla (2.70%), Bucaramanga (3.51%), and Cartagena (3.78%) experienced smaller rises in housing construction costs. The capital of Bogotá came in around the national average at 4.57%.
(Photo credit: Jared Wade)