New-home construction costs were 6.8% higher in July than a year earlier
Portugal's official construction-cost estimate shows materials up 6.3% and labour up 7.3% year on year. Overall costs were unchanged from June to July.
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Archived 12 September 2026Anyone building, renovating or pricing a development should expect continued pressure in quotations, while checking the actual contract instead of applying the national index as an automatic surcharge.
- The estimated cost of new housing construction rose 6.8% year on year in July.
- Materials were 6.3% more expensive and labour costs were 7.3% higher than in July 2025.
- The overall index was unchanged between June and July, despite the annual increase.
- An index movement does not replace a written quotation, contract clause or itemised invoice.
The annual rise has slowed, not disappeared
The July estimate from Statistics Portugal puts the annual increase at 6.8%, down from 7.4% in June. Materials and labour each contributed half of the annual movement, even though labour remained the faster-growing component.
The month-to-month picture was flatter: the overall index did not move between June and July. Materials increased by 0.3% over the month while labour fell by the same percentage, leaving the combined index unchanged.
How to use the number in a real project
The index is a national statistical estimate, not the price of a particular extension, roof or new house. Location, specification, access to the site, contractor capacity, permits and the timing of purchases can move a quotation far away from the national average.
Ask for an itemised scope and make sure the contract says how price changes, substitutions and unforeseen work will be approved. If a contractor refers to an index, confirm which index, reference month and adjustment clause the contract actually uses.
What you can do now.
- 01
Refresh quotations that are more than a few weeks old.
- 02
Compare like-for-like scopes rather than only the total price.
- 03
Keep a contingency for work that is genuinely outside the agreed scope.
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