Construction prices for residential buildings are increasing – plus 16.9 percent

Berlin The prices for the construction of new residential buildings are increasing again. The new construction of conventionally manufactured residential buildings rose last November by 16.9 percent compared to the same month last year, as the Federal Statistical Office announced on Tuesday in its quarterly statistics.

In August 2022 there was still an increase of 16.5 percent, after the strongest increase in more than 50 years of 17.6 percent was determined in May 2022. From August to November alone, construction prices increased by 2.5 percent.

The enormous increase in costs threatens to result in many contractors and investors abandoning planned projects – especially since not only do more materials have to be paid for, but interest rates have also risen noticeably recently. The construction and real estate industry is therefore warning of a collapse in German housing construction.