Construction costs are currently skyrocketing

Has anyone already received an offer for financing after the ECB rate hike?
Or roughly an idea what will happen with the interest rate

I don’t know how often this has already been asked and answered. The ECB key interest rate initially has NO impact on a construction financing interest rate.

To explain: The key interest rate is the rate at which banks can borrow or deposit money at the ECB. However, the construction financing interest rate is driven by the capital market. Covered bonds, etc. Interest rates for real estate financing typically precede a key interest rate by about 6-12 months.

Result: Nothing happened after the key interest rate increase.

Last talks 3 weeks ago were at 2.4%, that will presumably be history.

For which fixed interest period? The refinancing rate for 10 years (without margin, liquidity costs, etc.) was 2.53% yesterday. For 15 years we are already partially offering above 4%.

4%? Then our construction would by now have to be about 35% cheaper. Without the money thrown at us by the KfW…RIP

4%? Then our construction should by now be about 35% cheaper.

Well, that’s why prices for new builds are currently dropping quite significantly, especially in the commercial sector.

Difficult topic. We are currently caught between a rock and a hard place – interest rates are going up, or have already been going up for some time. But nothing can really get cheaper as long as material is so expensive. Our contractor sometimes mentions what the tonne of construction steel costs at the moment... so overall, it can't really get cheaper.

Our builder sometimes mentions what a ton of reinforcing steel currently costs... it can't really get any cheaper overall.

Then he complains endlessly to you. The steel price is currently lower than before the war started - albeit more volatile. And also lower than in autumn 2021.

You can easily verify this online yourself - links are not allowed, so you'll have to google it yourself.

There are no craftsmen who don't complain. Generally, everyone in Germany complains. It's a bit of a culture! I also like to complain, even though our company makes billion-euro profits. It's all nonsense!