Construction costs are currently skyrocketing

Average construction costs in the Southwest have risen to €3800/m2.

Enter Baukosten 3800 into the search engine and read the article from Die Zeit.

Average construction costs in the Southwest have risen to €3800/m2.

Enter Baukosten 3800 in the search engine and read the article from Die Zeit.

This is madness. Together with continuously rising loan costs, a huge bubble is currently inflating.

The combined increase in construction costs and interest rates leads to massively higher annuities, which are removing potential builders from the demand market by the dozens.

The construction industry will very soon experience a severe crash, which will lead to a significant market correction.

So if you have the choice to build with the developer, would you rather act immediately to still secure a reasonably fair price or wait 1 year and hope that there will be no price increase but stable calculations instead?

As far as I understand, the 3800€/sqm refer to the sqm price of an apartment plus 740€/sqm for building land on the national average. In the single-family house sector, that is still 1500€/sqm less.

The 3800, however, refer to residential construction.

So if you have the choice to build with the developer, is it better to do it immediately to still secure a somewhat reasonable price or wait 1 year and hope that there will be no price increase but stable calculations instead?

How do you come up with the idea that there will be no price increase next year?