Construction costs are currently skyrocketing

Yesterday I cycled through a new development area from 2020 that I last saw in mid-2022. Back then, 7-8 houses were under construction and about 30 were completed. These 7-8 houses were now all finished except for some exterior work in places. However, not a single new construction project was added. So no shell constructions to be seen, just lots of grass about 1.5m high growing wild. I consider this proof of the construction decline. Since 2020, 15 houses had been started there every year. A resident told me that the municipality has not taken back any plots for a long time and plans to sue several builders whose deadlines for starting construction will soon expire. They simply can't sell the plots anymore. I found that quite shocking.

Here in NBG there are also many gaps where nothing is happening. Recently I saw a surveyor working two plots away, but that’s it. The plot next to us is overrun with weeds. The municipality has now extended the development deadline from 3 to 5 years "due to the current situation in the construction industry and the capital market." That likely means that the street completion will also take longer. Private house building seems to be completely dead at the moment.

Similar with us. Finally, the long-awaited development area was completed in 2022. All plots sold. Allegedly, the first ones were returned. No one has started yet.

In the neighboring town, plots were purchased and the period by which construction must be completed was extended

Yes, that was a full-speed braking last spring. I would say that everyone who arranged their financing in January/February and is pushing through with the construction project will be finished by the end of this year at the latest. Then we might reach 250,000 apartments for the [Ampel] this year. And in 2024 we will definitely see less than 200,000 apartments and in 2025 then 100,000 apartments if the interest rates do not drop. The new construction goal of 400,000 apartments will remain a pipe dream. In our neighboring town, the construction area is also completely lying fallow except for 5 plots. Nothing is being built there. Only one street away, someone is now building their house on an old plot that was bought at three times the official land value (in spring 2022). The building gap is also nice and apparently still affordable (the earthworks and preparation for the foundation slab are currently taking place). But these are the few exceptions.

We currently have a house under construction, a plot of land staked out, and a sign from Hanse Haus erected on one plot. For 20 plots, not bad in itself, but none are families.

They can sue for fulfillment all they want, they might as well stick themselves to the wall if no bank finances... Isn’t a reverse conveyance notice registered in case of building obligation? Then the city has to take it or approve the sale to third parties

I cannot share the other observations... Building area has been buildable since spring: 2x windows installed, our roof was covered today, 1x foundation slab completed and in the last 2 weeks 5 families have started with the earthworks... So far one building plot has been returned but that was already at the allocation because the property was not liked

They can also stick themselves to the wall if no bank finances on enforcement... Isn't a retransfer reservation note registered in the case of construction obligation? The city has to take it or approve the sale to third parties.

I can't share the other observations... Building area buildable since spring: 2x windows installed, our roof was covered today, 1x foundation slab finished, and in the last 2 weeks 5 families have started with the earthworks... So far one building plot has been returned but that was already at the allocation because the property was not liked.

Which region are you in?

We also still have a few who are building (we ourselves as well), but I think that mostly those who took advantage of the interest rate rise are still in progress.