Construction costs are currently skyrocketing

Well, now I feel guilty because I'm rambling off-topic here, so I'll contribute something: I ordered windows for a construction project. 30% more compared to last year. Seller's statement: stable with a slight tendency towards a moderate increase in the coming months. He ruled out that it will be cheaper soon.

Windows will become quite expensive. Anyone who can should buy now. Glass production is 90% with gas-fired melting tanks. Any questions?

Windows will become quite expensive. Those who can should buy now. Glass production is 90% done with gas-fired melting furnaces. Any questions?

Although windows are expensive in relation to energy consumption
We are not talking about canning jars, but about thin triple glazing - a premium product.

With the clay brick that weighs 4kg and costs 80 cents (used to cost), it's a different story.

Of course, everyone jumps on the bandwagon.
When there was the crisis with the shutdown of the granulate plant in the USA, the linear meter of DN110 KG pipe cost 10€, before it was 1€.
And now it permanently costs 2€. :D

…construction costs, on the other hand, have already calmed down again and no longer need to be discussed :cool:

You often read about people who waited last year because they thought building would become cheaper. I just calculated it for our project – thanks to the interest rate increase from about 1% to 3%, our construction would now have to be almost 25% cheaper than half a year ago to be at the SAME costs. Whoever believes that. For example, I have our parquet in mind – it was under 40 euros per sqm a year ago, now they want over 60 euros. I’m curious when that will “calm down” – sure, it will cost 40 euros again in 2 years, wake up? You read about “price collapse” in German big cities because asking prices have dropped by 5-9%… In fact, the interest rate has simply been added, and whoever needs external financing has just got the direction from the ECB again today.

I also observe that prices are by no means falling, but large amounts of land are coming back on the internet here, which were previously unavailable (maybe there is more room for negotiation now?). Newly built apartments with financing takeover of 2% (is that even possible?) are also now coming onto the market. Therefore, I would not bet my life that we will see a correction of prices in a few months due to a drastic collapse in demand. Maybe only around -10%, but when I look at the many plots of land at prices that were still achievable a year ago, there will certainly be much more room for negotiation with a larger supply. Because now many people here are also quickly putting their grandchild's plots on the market because they think the bubble is bursting, even though maybe we have already passed that point. Therefore, there can be a normalization in land prices and even further rising interest rates. Construction costs will probably not decrease (gas problem etc.), but developers are also offering shell inspections again, which would have been unthinkable a year ago. Back then everything was already sold before construction started, but if interested parties drop out, such things are once again taking place more frequently. It remains to be seen that the next few months will be exciting as to whether prices actually fall and where (existing properties, new builds, land). All purely speculative though. Maybe prices won't fall at all and owning property will in the future be a privilege of the upper middle class.

It may be anything - but the truth is that it still comes out more expensive than in 2021. No matter how you look at it. There will be no massive collapse!