Overview
- The cost of new residential construction climbed 3.2% year-on-year in May, exceeding the 2.1% consumer inflation rate.
- Prices for electrical, security and IT installations climbed 5.7%, timber and carpentry works rose 4.8% and heating systems increased by 4.5%.
- Office building costs rose 3.5%, commercial development by 3.4% and road construction by 4.4% over the same period.
- Since 2022, war-driven surges in raw material and energy prices have been the main drivers of the building cost inflation.
- The Union-SPD government has introduced regulatory relief for municipalities, a record social housing budget and a Bau-Turbo fast-track approval scheme to boost housing supply.