Construction industry - Construction prices rise more slowly
The prices for construction are no longer increasing at the same rate as in previous years. The Statistical Federal Office has determined a price increase of 2.7 percent for new construction in residential buildings in May compared to the previous year. In the first quarter, the price increase was 2.8 percent. Both values are significantly lower than the price increase rates of the so-called construction inflation in the years 2022 and 2023, where double-digit price increase rates were the norm.
However, statisticians observe differences between the trades in residential construction. For instance, the cost of raw construction work has only increased by 0.6 percent, and concrete work is even 1.2 percent cheaper than a year ago, as the authority further reports. Roofers earned 3.2 percent more in May 2024, and earthwork is 4.2 percent more expensive. For the installation of heating systems, craftsmen reportedly charged 6.0 percent more. Maintenance work on buildings is 3.7 percent more expensive than a year ago.
Higher price increases are consistent in road construction with an average of 4.4 percent. Prices in this area had previously risen more strongly than in residential construction.
Press release Destatis Construction Prices 5/2024
In contrast to the decreasing price increase rates in residential construction, the cost of installing heating systems in Germany has seen a significant rise, with craftsmen charging 6.0% more. Despite the overall decrease in prices, maintenance work on buildings in Germany is now 3.7% more expensive than it was a year ago.
