Germany Sees Slower Growth in Construction Costs

The construction prices in Germany are no longer growing at the same rate as in previous years. The Statistical Federal Office has reported a 2.7 percent increase in prices for new residential construction in May compared to the previous year. In the first quarter, the price increase was 2.8 percent. These figures are significantly lower than the construction inflation rates of 2022 and 2023, which saw double-digit increases.

Statisticians have observed variations among different trades in residential construction. According to the authority, the cost of raw building work has increased by only 0.6%, while the cost of concrete work has decreased by 1.2% compared to a year ago. In contrast, roofers earned 3.2% more in May 2024, and earthwork costs have risen by 4.2%. The cost for heating system installations has gone up by 6.0%, and maintenance work on buildings is 3.7% more expensive than it was a year ago.