REIC expects house prices to rise by 5-10% in 2023

REIC expects house prices to rise by 5-10% in 2023

Housing prices are projected to rise 5-10% this year as the price index for standard housing construction continued to rise, increasing at an annualized rate of 5.6% in the fourth quarter of 2022 amid labor shortages.

The price index for the construction of standard houses in the fourth quarter of 2022 was 131.9, which is 5.6% more than in the same period of 2021, and 0.2% less than in the third quarter of 2022.

The increase compared to last year was due to an increase in prices for design, construction and system work. The largest growth occurred in the construction sector, which accounted for 28.6% with an increase of 6.1%.

In the category of building materials, prices increased by six positions. The largest increase was in plumbing by 13.2% as a result of high oil prices, which affected production and transportation costs. It is followed by wood and wood products (9.5%), steel and steel products (7.5%), electrical and water supply equipment (3.4%), and concrete products (2.5%). Other construction materials rose in price by 3.9%.

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