Construction prices in Germany: Construction prices are rising faster than they have been in three years

Building in Germany has once again become significantly more expensive. The construction of new conventionally manufactured residential buildings cost 5.5 percent more in August than in the previous year, as the Federal Statistical Office announced in its quarterly evaluation. The last time there was an even higher increase was in the summer of 2023 at 6.3 percent. In May it was five percent. All price information refers to services on the building including VAT.

Across Germany, fewer apartments are being built than is necessary. This is especially true for large cities. Steadily rising construction costs are considered one of the main obstacles. Building interest rates have also risen recently, which is leading to reluctance among private individuals and large investors.