The increase in construction costs will have a direct relationship with the increase in the prices of developments, shops, offices, premises and homes that they present during the end of their construction.

In addition to the human cost, the war between Russia and Ukraine has already caused economic damage to different and important industries. One of the most affected sectors has been construction, which has shown increases of up to 40%.

According to a report by the real estate consultancy Lamudi, the invasion of Ukraine caused various raw materials to show a significant depreciation that has already affected the rest of the world. In European countries, for example, trade relations have been affected, which is reflected in the real estate and construction markets in the Americas region.

According to the report, the price of steel increased by 40%, while supplies such as PVC, concrete, plaster, cement and their derivatives registered increases of up to 12%.

“The increase in construction costs will have a direct relationship with the increase in the prices of developments, shops, offices, stores and homes that they present during the end of their construction. In other words, if a house had an amount already established during its beginning, today it may rise 25 to 30 percent in its sale price due to the increase in materials,” said Daniel Narváez, marketing VP of Lamudi.

The consultant pointed out that the increase in costs in construction raw materials will have a direct relationship in the increase in the prices of developments, shops, offices, premises and homes that they present during the end of their construction.

Additionally, it should be taken into account that the European conflict directly affects Latin American countries that maintain trade relations with Russia and Ukraine.

According to data from the Ministry of Foreign Affairs (SRE), during 2020, Russia was Mexico’s 35th trading partner worldwide, which positions it as one of the first countries in Central Europe with traffic that left an economic impact equivalent to 1,291.8 million dollars.