Construction costs for housing in Germany see highest increase in three years
Construction costs for new residential buildings in Germany increased by 5.5 percent year-on-year in August, reaching a three-year peak.
According to data released by the Federal Statistical Office of Germany, the construction cost of new residential buildings in the country rose by 5.5 percent in August compared to the same period of the previous year.
August Construction Costs
The Federal Statistical Office of Germany published the construction price index data for residential buildings for August. According to the announced figures, the construction cost of new residential buildings in the country recorded an increase of 5.5 percent in August compared to the same month of the previous year.
Highest Increase in Three Years
With this rate, Germany experienced the highest increase in construction costs in the last three years. Construction costs in the country had last shown an increase of 6.3 percent in the summer period of 2023.
Price Change Over the Three-Month Period
While the annual cost increase rate stood at 5 percent in May, prices showed a 1 percent increase during the three-month period covering May and August. It was reported that all relevant data include on-site services including value-added tax.
Housing Shortage and State of the Sector
The housing shortage in Germany reached a record level with 1.35 million apartments. Felix Pakleppa, Managing Director of the Central Federation of the German Construction Industry, emphasized that the sector continues to maintain its fragile structure and called on authorities for support.