ÉKE: Raw material price increase reflected in higher costs

Construction

The Hungarian Association of Building Materials Traders (ÉKE) noted the impact of the global increase in raw and base material prices on the local market in a statement issued this week, according to portfolio.hu.

While pointing out the passthrough of higher import prices, the association said there is "no such apparent reason" for the sharp increase in the cost of labor for home renovations. ÉKE said that labor rates for home improvement had "risen well over" the rates at big construction projects. It said labor rates for tilers rose from net HUF 3,500-4,000 per sqm in 2019 to HUF 8,000 in bigger cities by the spring of 2021, and now stands as high as HUF 12,000 in some places.

ÉKE said government plans to restrict exports of building materials could provide a "partial solution" to higher prices, but also recommended extending the period recently launched home renovation subsidies are available to prevent increased demand from driving up prices, for both materials and labor.

The government has announced a crackdown on suspected price-gouging by building materials sellers while a two-year home renovation subsidy scheme for families with children is underway.

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