The price of new-build apartments rose by around 17% from November 2021 to November 2022. This was reported by the Federal Statistical Office (Destatis). Increased prices for various services and materials are likely to have had a significant impact on this. According to Destatis, prices for roofing and sealing work rose by 20.3 percent, concrete work by 17.6 percent, shell construction work by 15.8 percent, earthworks by 15.7 percent, masonry work by 13.6 percent and carpentry and timber construction work by 5.1 percent during the period in question.
The Federation of the German Construction Industry takes a critical view of the developments. "In order to avoid getting into financial difficulties, companies have had to take the increased material and energy prices into account when calculating the costs of new projects," explains Tim-Oliver Müller, Managing Director of the Federation of the German Construction Industry.
However, the rise in construction prices is a boomerang for new residential construction. "Many projects have been put on hold or even canceled. Incoming orders slumped by 14% in real terms in the first ten months of 2022, and residential construction has the highest cancellation rate of all construction sectors," says Tim-Oliver Müller.
Sources: destatis.de/bauindustrie.de
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