Increase in construction prices – industry concerns about orders | Free press

Construction prices have known only the upward direction for a long time. Apart from rising interest rates, unpredictable prices of building materials may, to some extent, hold back construction activity.

Wiesbaden.

Faced with soaring prices in construction, the industry is concerned about new orders. “We are concerned that new housing projects will be put off for the time being due to rising construction costs and rising interest rates,” said Tim Oliver Müller, CEO of the German Construction Industry Association.

For private construction projects, higher energy and living costs can also undermine the budget for the dream of your own home.

The Federal Statistical Office previously reported that prices at German construction sites rose more than in more than 50 years. In May this year. construction works had to be paid by 17.6 percent. more than a year earlier. This was the highest increase since May 1970, when prices rose by 18.9%. In the previous reporting month, i.e. February 2022, the increase was 14.3%.

Exploding material prices

The reasons are rare and expensive materials and high demand. The price increase was particularly strong for works related to metal structures (+ 23.6%) and concrete works (+ 23%). Growth below the average was recorded for earthworks (+14.8%) and masonry (+12.8%).

The increases are the result of soaring material prices, explained Müller. Since suppliers rarely make any price commitments, construction companies cannot reliably calculate their bids. Agree with customers on fabric price shift clauses. It is also all the more important to lower costs elsewhere, for example by standardizing government building codes.

The central association of the construction industry has called for a national raw materials and energy strategy for building materials and various materials. “We can no longer be dependent on imports,” said CEO Felix Pakleppa. “A national construction and raw materials summit would be an important first step.” (dpa)

Leave a Comment