The German Institute for Economic Research (DIW) is forecasting rising sales in the construction sector - despite the coronavirus pandemic, capacity bottlenecks and high prices for construction services. After the nominal construction volume already rose by 10% to €488 billion in 2020, the DIW expects construction output to increase by a further 13% this year and by around 6% next year. Even taking into account the rise in prices (price adjustment), construction output is expected to increase by around 3% in each case.
The DIW also assumes that the desire to own a home will remain strong and that prospective buyers will invest in one - partly due to the low interest rates. The DIW also anticipates that modernization and energy-efficient renovation measures will be undertaken on existing buildings this year. It cites the rise in energy prices as the reason for this.
In addition, the DIW experts suspect that there will be pent-up investment in commercial construction projects that have not yet been realized due to the coronavirus pandemic. Once the economy recovers, these projects can be kick-started again. Interested parties can view the full study in the weekly report at diw.de.
Source and further information: diw.de
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