Scout**
2022-09-22 16:34:31
- #1
The rising construction interest rates and the explosion in building material costs are currently hitting construction projects with full force. Data from the Institute for Economic Research (Ifo) show that order cancellations in the construction industry more than doubled in August compared to the same month last year, reaching 8.8 percent. The numbers are even more dramatic in residential construction. With 11.6 percent, order cancellations in August more than quintupled compared to the same month last year.
The majority of cancellations in residential construction concern single-family houses. However, according to Ifo, multi-family houses with three or more residential units also recorded a cancellation rate of 10.7 percent in August. Condominium units in particular are becoming the industry's headache – as shown by the example of construction entrepreneur Becker. How construction of rental apartments will proceed, on the other hand, remains the big mystery in the construction industry.
The majority of cancellations in residential construction concern single-family houses. However, according to Ifo, multi-family houses with three or more residential units also recorded a cancellation rate of 10.7 percent in August. Condominium units in particular are becoming the industry's headache – as shown by the example of construction entrepreneur Becker. How construction of rental apartments will proceed, on the other hand, remains the big mystery in the construction industry.