No menu items!
MarketNew residential construction suffers from high prices

New residential construction suffers from high prices

-

For many custom home builders, the dream of owning your own four walls is now shattered. Construction costs are rising. The industry is worried – also about the construction of new apartments.


In the face of rapidly increasing costs, the construction industry is afraid of housing construction in Germany. Tim Oliver Müller, managing director of the construction industry association, sees two reasons for this.

Either the projects no longer paid off or rising construction costs and interest rates blew up household budgets already burdened by exploding energy costs.

Building material and thus building prices have been rising rapidly for months, which has already caused many commercial and private home builders to withdraw from their projects.

Tim Oliver Müller, Construction Industry Association

According to data from the Federal Statistical Office, construction prices rose slightly more slowly in August, but the level is still high. The new construction prices of conventionally produced houses increased by 16.5 percent compared to the same month of the previous year. In the previous reporting month of May, the increase in a year was 17.6 percent.

Material shortage causes high cost increases

Scarce and expensive materials are among the reasons for the increase in costs. The price increase in August was particularly strong for the following civil works in the building:

  • Roofing and roof sealing business: plus 19.6 percent
  • Carpentry business: up 19.6 percent
  • Concrete works: up to 18.2 percent

According to Müller, 17 percent of residential construction companies surveyed in the Ifo business survey in mid-September said they were affected by cancellations. This is the highest rate since 2012 when the question was first asked. The decrease in incoming orders also worries the industry. Mueller warned:

All tools must be used to prevent residential construction from coming to a standstill.

Tim Oliver Müller, Construction Industry Association

Not just for economic reasons, but because the urgent need for living space, especially in the social sector, has to be met.

400,000 new apartments per year: Construction Minister Geywitz confirms target

In the coalition agreement, the federal government set itself a target of 400,000 new apartments per year. Federal Construction Minister Klara Geywitz (SPD) recently confirmed the target despite the challenging environment. However, experts from the real estate sector expect a decline in new construction this year.

Müller called for funding for new construction and renovation, as well as tax investment incentives. Reducing construction costs and standardizing government building codes through the use of industrial production methods are also necessary.

Source: ZDF

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Biden ready to use military means “as a last resort” against Iran

US President Joe Biden. archive photoMulley: Biden ready to take military action to prevent Iran from acquiring nuclear...

Australia beat Denmark to advance to the World Cup playoffs for the first time in 16 years

The Australian team beat the Danes to reach the World Cup play-offs for the first time in 16 years.DOHA,...

According to media reports, the EU is considering lowering the price cap for Russian oil

Oil pumps in the Almetyevsk region of the Republic of Tatarstan. archive photo Bloomberg: EU Discusses Reducing Russia's Oil...

Not only “Wild and Silent Night”: 5 films with “non-standard” Santa Claus

Unpublished, bizarre, wrong, or ready for action. On the occasion of the release of the film with David...

Must read

Biden ready to use military means “as a last resort” against Iran

US President Joe Biden. archive photoMulley: Biden ready...

Australia beat Denmark to advance to the World Cup playoffs for the first time in 16 years

The Australian team beat the Danes to reach the...
- Advertisement -spot_img

You might also likeRELATED
Recommended to you