Increase in Labor and Material Costs Causes Construction Expenses to Surge in March

Written by Sara Aquino

Published on 12/04/2025 at 21:29

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Construction Costs Rise 0.35% in March, Driven by Increases in Material Prices and Labor Adjustments, According to IBGE.

The National Construction Index (SINAPI), released last Friday, (11), by the Brazilian Institute of Geography and Statistics (IBGE), registered a variation of 0.35% in March 2025. This increase is 0.12 percentage points higher than the February index, which was 0.23%. The total construction cost, which includes materials and labor, showed considerable growth, directly reflecting on the value of the square meter.

The Cost of the Square Meter is R$ 1,810.25

In March, the national construction cost per square meter increased from R$ 1,803.90, recorded in February, to R$ 1,810.25.

The composition of this value is divided between materials, which totaled R$ 1,043.45, and labor, which amounted to R$ 766.80.

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The variation of 0.35% observed in materials reflects an increase of 0.06 percentage points compared to February (0.29%), and is higher than the index for the same month in 2024, which was 0.13%.

Meanwhile, labor had a variation of 0.36%, representing an increase of 0.22 percentage points compared to February (0.14%) and 0.38 percentage points compared to March 2024, which showed a negative rate of -0.02%.

Labor and Materials: Performance in the First Quarter of 2025

According to the research manager, Augusto Oliveira, the first quarter of 2025 closed with distinct increases in the components of construction.

While the share of materials recorded an increase of 0.82%, labor saw a more substantial growth, with a rise of 1.48%.

When analyzing the accumulated data over 12 months, materials had a growth of 3.71%, while labor showed a variation of 6.04%.

The regional analysis revealed that the South had the highest variation in March, at 0.43%, followed by an increase of 0.42% in the North and 0.35% in the Northeast.

Meanwhile, the Southeast had an increase of 0.34%, while the Central-West recorded the lowest variation, at 0.24%.

Acre was the state that presented the highest variation rate in March, with an increase of 4.11%, resulting from adjustments in the materials and labor of professional categories.

The SINAPI is a Fundamental Tool for the Construction Sector

Created in 1969, the National Construction Index (SINAPI) aims to provide accurate information about costs and indices of construction throughout Brazil.

This index is an essential tool for drafting and evaluating budgets, as well as closely monitoring the costs that impact the construction sector.

By gathering data from various regions of the country, SINAPI provides a clear overview of price evolution and assists professionals and companies in decision-making.

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Increase in Labor and Material Costs Causes Construction Expenses to Surge in March

Construction Costs Rise 0.35% in March, Driven by Increases in Material Prices and Labor Adjustments, According to IBGE.

The Cost of the Square Meter is R$ 1,810.25

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Labor and Materials: Performance in the First Quarter of 2025

The SINAPI is a Fundamental Tool for the Construction Sector

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Increase in Labor and Material Costs Causes Construction Expenses to Surge in March

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The Cost of the Square Meter is R$ 1,810.25

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