Materials for the construction sector, including fuel, steel, and cement, are becoming more expensive, and a shortage of foreign labor has led to higher wages.
Developers cannot and do not want to keep real estate prices low. Although consumers are not ready for a price increase, it is inevitable.
The cost of fuel has increased by 50%, the Bangkok Post reports. In 2021, the annual growth of the construction materials price index rose by 8% — the highest level since 2008.
Many materials are supplied to the country from abroad and, due to international restrictions, many deliveries have been postponed, delayed, or canceled.
According to the Bureau of Trade and Economy for December 2021, the cost of iron and steel products increased by 28.7%, concrete — by 5.6%, aluminum, asphalt, and sand — by 4.2%, electricity and water equipment — by 3.8%, and cement — by 3%.
Overall, construction costs will rise by 3-4% in 2022. The average increase in real estate prices will be 2%.