That is why building is still worthwhile

Frankfurt The economy is recovering from the corona shock, the construction industry is doing better again – but not as well as one might think. The supply situation is causing problems for construction companies. In September, according to the Ifo Institute, around 36 percent of building construction companies complained about material shortages, in civil engineering it was just under 28 percent.

“Housing construction appears to be the hardest hit. Here, 40 percent of the companies reported that their construction activity was hindered by delivery problems, ”says Ifo researcher Felix Leiss.

The delivery bottlenecks in the construction industry are caused by a “perfect storm” of increasing demand and interrupted supply chains, explains Ben Laidler, market strategist at the broker eToro. The demand for construction works in the residential real estate segment will be boosted by the low mortgage rates and more renovation work. At the same time, there were still gaps in the supply chains as a result of the pandemic.