Construction costs are currently skyrocketing

Bargain! 15k demolition and you have a super cheap plot. Where is the problem?

By today's standards, you can only build a lighthouse on 122 square meters including the required setback limits and parking spaces.

According to today's standards, you can only build a lighthouse on 122 square meters, including the appropriate distance limits and parking spaces.

Then you just gut the interior and rebuild in the old cubature. A basement according to today's standards is simply omitted...

Not concerning construction costs themselves, but due to the interest rates, Manager Magazin titled today: "Rising interest rates trigger a run on construction loans"

Thus, Landesbausparkasse Bayern granted around 890 million euros in loans in the first four months of this year. "That is over 70 percent more than in the same period of the previous year," reports a spokesperson in Munich. The development is similar at the sister institute in North Rhine-Westphalia: LBS West – which also serves Bremen besides NRW – reports an increase of 50 percent.

However, this apparently includes both new loans and follow-up financing (I would have been interested to know here whether the distribution is "as usual" or if one side weighs more) It sounds like at least in the short term there is not much to see of declining demand (which some had hoped for here). :oops:

Not concerning construction costs themselves, but because of the interest rates, Manager Magazin titled today: "Interest rate hike triggers rush on construction loans"

Such an article does not come about overnight and there are editorial deadlines. I can very well imagine that this reflects the rush in February and March and possibly still early April.

I can well imagine that this reflects the run in February and March and possibly still early April.

It does say "in the first four months," but yes, that of course includes the February/March period.

It says "in the first four months," but yes, that of course includes the February/March period.

I know from first hand that the rush in the first 3 months was enormous. Extremely enormous. I have to research how things look in April. I know from construction companies that a significant portion of the builders had to downsize their projects due to the discontinuation of subsidy programs, increased interest rates, and rising construction costs. At house building companies, you can quickly be stuck before the loan contract is signed, and then you have a mess. It also seems that demand at construction companies is becoming more volatile and some builders are dropping out. However, the order books are full for this year; projects may need to be postponed because prices from 2021 are no longer sustainable and the general contractor does not want to take a loss either.