Status: 07.02.2022 11:06 a.m
The prices for the construction of houses and apartments in Germany rose sharply in 2021. The sectors expect construction prices to rise sharply again in 2022 – albeit less strongly than in the previous year.
Construction prices in Germany are expected to increase significantly again this year. The strong price increase in 2021 with an increase of six percent will continue, as the general manager of the Central Association of the German Construction Industry, Felix Pakleppa, said. That was the strongest increase in more than 20 years.
Plus four after plus six percent expected
This year, the association expects growth of another four percent. “That means things are calming down a bit, but prices are still rising,” says Pakleppa. It is not foreseeable whether the price level from before the pandemic will be reached again. “And that’s mainly due to the sharp rise in material prices.”
Lumber price doubled
The largest price increase was in lumber. According to Pakleppa, prices here have roughly doubled in the past year. “For plastic and insulating materials it was around 30 to 40 percent, for steel 70 percent.” Since the turn of the year, construction timber has become somewhat cheaper. “We are now up 89 percent compared to the pre-pandemic period, so it is still at a very high level.” The association identified energy prices, wage increases and inflation as further price drivers for the construction industry.
Pakleppa sees the construction industry facing difficult challenges. “On the one hand, there is the goal in the coalition agreement that 400,000 new apartments should be built each year and that you should be able to rent apartments at affordable prices.” On the other hand, there are ambitious goals in the areas of sustainability and climate change. “Requirements like this also lead to building becoming more expensive because we have to build with better energy efficiency.”
Further price increases are imminent
Further price increases are also threatened in other sectors. According to a survey by the Ifo Institute, companies in Germany are planning further price increases. Your price expectations for the next three months rose to a new high in January, as the Ifo Institute announced. The companies pass on the increased costs for energy and for the procurement of primary products and merchandise to their customers.
According to the survey, more than 60 percent of wholesalers and almost 58 percent of retailers are planning price increases. Below the average are service providers with 41.9 percent and the construction industry with 41.5 percent.