The need for living space is still great, but building it is becoming more and more expensive. According to the Federal Statistical Office, the price for a conventional residential building in August was 16.5 percent higher than a year ago. Compared to May, construction was again 2.6 percent more expensive. The statisticians named scarce and therefore expensive materials and continued high demand as the main reasons for the increased costs. However, this could soon be over, in the private sector there are already signs of a significant cooling off. Sharp rises in interest rates and growing uncertainty about the economic consequences of the energy crisis and inflation are already leaving their mark here: significantly fewer single and two-family houses have recently been approved, and at the same time the volume of new private construction financing by the banks has fallen rapidly.
Federal Statistical Office – Construction prices continue to rise – Economy
