Home renovations: Increase of up to 70% in cost per square meter.

Citizens who are renovating their homes at this time are facing increases of up to 70% in prices per square meter. The rally in building material prices and the speed of price increases are forcing professionals to readjust their offers even within weeks.

Speaking to Business Daily, civil engineer and property appraiser Frixos Sakellaris notes that the majority of materials have seen price increases of over 40% within a year. As he explains, the price of steel has doubled, glass has risen significantly in price and is in short supply on the market, cables have seen a significant increase, window frames have seen their price rise by 35% in a few months, and overall, almost all raw materials have recorded large increases.

But what does this mean for the end consumer? According to Mr. Sakellaris, all of the above leads to the cost per square meter for an average renovation rising from around €950 in December 2020 to €1,500-1,600 today. This represents an increase of up to 68% for the consumer.

The side effects of the pandemic, with workers in raw materials production being furloughed amid increased demand as construction continued despite the pandemic, the surge in energy prices and fuel price increases in general, and finally, problems in the global supply chain, are some of the reasons for the above increases.

This is explained by Mr. Vangelis Sahoulidis, civil engineer and owner of a construction company based in Ptolemaida and operating throughout the country. As he points out to BD, the offers he gives to his customers are now valid for up to three weeks, as the pace of price increases is such that within just a few weeks, all the data for the project under consideration may have changed.

As he explains, there are materials that may record an increase of up to 100% compared to the previous year. Indicatively, he mentions an increase in metals of up to 70%, a 50% rise in timber for roofs, and a surge in the price of aluminum. Giving an idea of the increases for the end consumer, Mr. Sechoulidis explains that for a total renovation (with changes to plumbing, electrical, windows, floors, heating, etc.) for an 80-90 sq.m. three-room apartment, the owner would pay around €24,000. Now, they will be asked to pay over €32,000.

Risk to the real estate market from increases
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According to the latest data from ELSTAT, the annual increase in building material prices (from November 2020 to November 2021) reached 7.1%. Specifically, prices increased as follows:

Electricity (37.7%), Diesel fuel (34.2%), Reinforcing steel (20.3%), Copper pipes (17.8%), Copper tubes (16.6%), Radiators (8.6%), Bricks (8.5%), Plastic pipes (7.8%), Plastic, synthetic, and fiber cement pipes (6.3%), Garage door mechanisms (5%), Safety glass panes (5%), Aluminum frames (4.3%), Built-in cabinets (4.3%), Interior doors (3.8%), Ready-mixed concrete (3.2%), Wooden windows (3%), Plastic, acrylic, water (2.9%), Marble slabs (2.8%), Cement (2.8%) and Parquet flooring (2.7%).

According to the Bank of Greece, the increase in the cost of raw materials may put a “brake” on the dynamic recovery of the real estate market. As pointed out “there are still parameters of uncertainty, which are no longer limited to the direct effects of the pandemic, but are also related to the duration of the disruption of international supply chains and the increased costs of raw materials, factors which, if they persist for a prolonged period, may slow down the pace of construction activity and limit current capital returns in the real estate market.”

CHRISTINA ZAFEIROULE