Building in Germany is getting more and more expensive

The factories’ order books are full and material costs are rising. Builders feel this – especially in three areas.

Many want a home of their own, but you have to be able to afford it first.

Dhe construction costs in Germany have risen sharply. For conventional new construction of residential buildings, prices had to be paid 4.8 percent higher in February than a year earlier, as the Federal Statistical Office reported on Friday. The last time there were higher increases was in 2007.

The prices for earthworks (+7.4 percent) and masonry work (+6.0 percent) rose particularly sharply. The electricians (+5.6 percent) were particularly strong in interior work. The reason for this is the fact that the companies are well utilized.

Builders not only have to dig deeper into their pockets for apartments, but also for office buildings. Here, the new building prices also rose by 4.8 percent. In the case of commercial buildings, the increase was 5.0 percent. In road construction, prices rose by as much as 7.5 percent over the course of the year.

Construction companies make good money

The main association of the German construction industry named increased material costs and higher collective wages as the most important reasons for the price increases.

In addition, the companies are able to pass the increased costs on to the client and increase their equity ratio, explained Managing Director Dieter Babiel in Berlin. The fact that the insolvency rate in the construction industry has fallen in recent years can only be attributed to the fact that the construction companies “finally earned something”.