Because there is a lack of skilled workers, wage costs for construction projects are likely to rise. This also drives up the prices.
(Photo: dpa)
Dusseldorf The rapidly rising prices for energy and building materials are putting the construction industry in a mood of alarm: According to data from the Federal Statistical Office, prices for residential, office and commercial buildings increased by between 17.6 and 19.4 percent year-on-year in the second quarter alone.
And there is no end in sight: According to a study by the consulting firm Pricewaterhouse-Coopers (PwC), which is available exclusively to the Handelsblatt, builders will have to be prepared for further increases in prices for at least the next two years. “We assume that construction prices for real estate will increase by more than 20 percent in the next two years,” says Harald Heim, partner and real estate specialist at PwC.
This is causing demand for new construction projects to collapse across the board. A few days ago, the Central Association of the German Construction Industry (ZDB) complained that incoming orders in the industry in May were around 7.5 percent below the previous year – and the trend is continuing to fall.
“The mood is changing on the construction site”
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