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Costs are still rising, though at a slower pace
In figures released on 8 September, INE estimates that new housing construction costs rose by 6.8% in July 2026 compared with July 2025. Material prices increased by 6.3% and labour costs by 7.3%.
This is an annual comparison, not a 6.8% increase within a single month. Nor can that percentage simply be applied to any home's selling price: a national construction cost index and a property's value measure different things.
A useful quotation makes its scope clear
If you plan to build, request quotations that specify quantities, materials, finishes and tasks. A seemingly lower total may exclude utility connections, landscaping, equipment or other items that you will need to pay for separately.
Record how long each quotation is valid, its price adjustment terms and its payment schedule. Compare offers for the same project and standard of finish. You can then identify whether differences arise from price, quality or work omitted from the quotation.
Comparing land, construction and a completed home
Separate your budget into land purchase, project preparation and construction. Add purchase expenses, professional fees and a contingency suited to the risks identified by your advisers. The advertised land price is only part of the investment.
For an existing home, assess its actual condition and the work required before comparing totals. The practical lesson is to build complete budgets and obtain current quotations, rather than assume that construction will always cost more or less than buying a finished home.