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Development area in Frankfurt am Main
Photo: Sebastian Gollnow / dpa
The increase in construction costs is making Germany's housing companies difficult to create.
This is shown by a current survey by the Central Association of the Housing Industry (GdW).
According to this, 65 percent of 174 companies are increasing the prices of ongoing new construction projects, and increases are expected for a further 18 percent.
In only 17 percent of all ongoing new construction projects, no changes can be identified.
According to the survey, the construction costs of new buildings that have already started are increasing by an average of around 14 percent, and the prices of planned projects by almost 19 percent.
According to the information, the price increases will affect up to 58,000 residential units in new buildings.
GdW President Axel Gedaschko cites delivery difficulties as a result of the Ukraine war, lower government subsidies and rising inflation as the reasons: "The perfect storm is brewing in the construction industry." If the price dynamics of the past few months continue, 24 percent of those surveyed plan companies to give up new construction projects completely, another 64 percent want to at least postpone the projects.
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