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Home Construction: Sustained Demand
Photo: Westend61 / IMAGO
According to the German Institute for Economic Research (DIW), the construction industry will do good business for the foreseeable future despite the current shortage of materials.
"Contrary to the general economic trend, the construction industry continues to successfully fight the corona crisis," explained DIW expert Martin Gornig.
"Sales should continue to rise in the coming years." The reason for this is the unbroken demand, as well as the rising prices for building materials.
Although construction companies could not fully pass on their costs to builders, for example, the prices in residential construction in the course of 2021 rose at times in the double-digit percentage range.
The DIW anticipates that material shortages will persist for the time being.
Therefore, prices for new buildings or renovations can still be expected to rise sharply.
However, this does not make the investment projects of the new federal government any easier, it said.
The traffic light coalition wants to build 400,000 new apartments every year.
According to the DIW, significant expenditures for construction work are also necessary for digitization.
The same applies to public infrastructure and the energetic renovation of public and private buildings.
According to the DIW, new residential construction is likely to continue to flourish in the current and next year in view of sustained demand and low interest rates.
In commercial construction, catch-up investments are expected after two weak pandemic years.
Growth prospects are also seen in civil engineering, primarily thanks to planned record investments by Deutsche Bahn and the federal government.
But even if the builders are willing to pay higher prices, it remains difficult to realize projects.
Because in many places there is a lack of skilled workers who could take on orders for the respective trades.
mik / dpa-AFX
