Construction costs are rising faster than they have been since 2007

The construction of new apartments in Germany The price rose more sharply in May than it has been since 2007. The prices for the new building conventionally manufactured residential building in May of the current year were 6,4 percent above the level of the same month last year, as calculated by the Federal Statistical Office. This is the highest increase in construction prices within a year since May 2007, said the Wiesbaden authority.

In May 2007, the increase in VAT from 16 percent to 19 percent contributed to the sharp rise in prices of 7,1 percent compared to May of the previous year. The prices for structural work on residential buildings were significantly more expensive in May. In particular, the great demand for building materials such as wood, steel and insulation is driving prices up on the world markets. Carpentry and wood construction work in Germany, for example, became more expensive than average, with prices here in May 2021 being 28,5 percent higher than a year earlier.

According to statisticians, the prices for roofing and waterproofing work rose by 8,3 percent year-on-year, for plumbing work they rose by 8,1 percent and for drainage canal work by 7,8 percent. Concrete and masonry work make up the largest share of the shell construction work - prices here rose by 6,6 and 4,8 percent, respectively.

According to the Federal Office, the prices for finishing work rose by 5,5 percent compared to the previous year. The prices for maintenance work on residential buildings were 6,2 percent above the previous year's figure. According to statistics, new construction prices for office buildings rose by 6,2 percent and for commercial buildings by 6,6 percent. In road construction, on the other hand, prices increased comparatively little compared to May 2020 with a plus of 2,4 percent.

Sales in the construction industry in Germany have so far been below the previous year's level for the year: According to the Federal Office, sales from January to April 2021 were 5,6 percent below the value of the same period of the previous year, although there was a year-on-year increase in sales of 3,6 in April Percent gave. The main construction trade includes the construction of buildings (structural engineering) as well as roads, railways and lines (civil engineering).

Price increase for materials

Almost all important building materials have recently become significantly more expensive. For example, the price for structural timber rose by 83,3 percent within a year, that for roof battens by 45,7 percent and that for construction timber by 38,4 percent. Steel prices are also driving costs. Reinforcing steel cost around 2021 percent more in May 44 than a year earlier. The statisticians see the main reasons for the rising wood and steel prices in the increasing demand at home and abroad as well as in problems in the supply chain during the corona pandemic.