The German Institute for Economic Research (DIW) expects sales in the construction sector to rise - despite the Corona pandemic, capacity bottlenecks and high prices for construction services. With nominal construction output having already risen by 10 percent to EUR 488 billion in 2020, the DIW expects construction output to increase by a further approximately 13 percent this year and by around 6 percent next year. Even taking into account higher prices (price adjustment), construction output will increase by around 3 percent in each case.
In addition, the DIW assumes that the desire to own a home will remain strong and that prospective buyers will make an investment in one - also due to the low interest rates. The DIW also expects modernization measures and energy-efficiency upgrades to be initiated in existing buildings this year. It cites the rise in energy prices as the reason for this.
In addition, the DIW experts believe that the commercial construction sector will see catch-up investments in construction projects that have not yet been realized due to the Corona pandemic. If the economy recovers, these projects could be relaunched. Interested parties can view the full study in the weekly report at diw.de.
Source and further information: diw.de
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