Further increases in prices for many materials made building in Germany even more expensive in the first half of the year. In particular, mineral building materials such as cement (plus 41.7 percent) or building sand (plus 22.7 percent) increased significantly in price compared to the same period last year, as the Federal Statistical Office reports.
According to the Wiesbaden authorities, however, there were significant price declines for building materials made of wood: solid structural wood (minus 28.0 percent) and roof battens (minus 25.3 percent) fell in price in the first six months of this year compared to the same six months last year.
Some products made of steel also became cheaper, even though its production, like that of mineral building materials, is comparatively energy-intensive. According to calculations by the Federal Office, reinforcing steel in bars cost 28.5 percent less than in the first half of 2022, and reinforcing steel mesh was 27.1 percent cheaper.
Almost all building materials are more expensive than before the energy crisis
“Despite the partly falling prices for individual building materials, the price level in the first half of 2023 for almost all building materials was above the level before the energy crisis,” the statisticians classified. As a result of the Russian attack on Ukraine, energy prices exploded.
The construction industry will feel this well into the current year: in the first six months of 2023, for example, the prices for lime and gypsum (plus 67.7 percent) and cement (plus 57.1 percent) were well above the level of the first half of the year 2021. Energy-intensive building materials such as flat glass – for windows, for example – increased in price by 45.4 percent during this period. Prices for metal building materials rose by around a third (plus 31.6 percent).
The increased prices for materials and labor as well as higher interest rates are slowing down construction activity. Real estate and construction associations assume that the federal government’s target of 400,000 new apartments annually will clearly be missed this year.
