Construction costs are currently skyrocketing

Currently for sale in our community: "Exclusive" new construction condominiums. Location: In the middle of nowhere. Highway 25 minutes away, many small villages, 1 hour drive to the next real big city.

Six units in a (admittedly truly exclusive and nicely laid out) multi-family house. Air-to-water heat pump, KfW55 standard, tiles and vinyl floors, elevator, balcony / terrace, barrier-free - garage or parking space is added to the purchase price. Price for 93 sqm: 325k € - approx. 3,500 € / sqm. Price for 104 sqm: 395k € - approx. 3,800 € / sqm.

Good grief... I'm really curious whether they will sell at that price.

It will probably come down to you having to include the parking space and, if you don't have enough for everyone, lowering the price there.

There is no increase in the supplier sector

But that is not why single-family houses are not flooding the market in the region, THAT would be the case if the OEM employee suffered financial losses ….

Currently for sale in our community: "Exclusive" newly built condominiums.
Location: In the middle of nowhere. Highway 25 min. away, many small villages, 1 hour drive to the next real big city.

Six units in a (admittedly really exclusive and nicely laid out) multi-family house. Air-to-water heat pump, KfW55 standard, tiles and vinyl floors, elevator, balcony/terrace, barrier-free - garage or parking space is added to the purchase price.
Price for 93 sqm: €325k - approx. €3,500 / sqm.
Price for 104 sqm: €395k - approx. €3,800 / sqm.

Wow... I'm really curious if they will sell at that price.

In our small town (rural), newly built condominiums in recent years have always been in the range of €3,100-3,500 per sqm (excluding parking space, garage, etc.). Now, a project is just being completed where the apartments cost about €4,500 per sqm (also excluding the aforementioned extras). I believe (almost?) all the apartments are sold. You pay a good half a million for a 100 sqm apartment.

Specifically: one apartment (2 rooms) is still available: 97 sqm, €427,600. Two parking spaces at €22,000 each are added. So a smooth €469,600 + additional costs. That easily puts you at half a million, and that's for 2 rooms.

Currently for sale in our community: "Exclusive" new-build condominiums. Location: At the arse end of the world. Highway 25 minutes away, many small villages, 1 hour drive to the next real big city. Six units in a (admittedly really exclusive and nicely laid out) multi-family house. Air-to-water heat pump, KfW55 standard, tiles and vinyl floors, elevator, balcony/terrace, barrier-free - garage or parking space is added to the purchase price. Price for 93 sqm: €325k - approx. €3,500 / sqm. Price for 104 sqm: €395k - approx. €3,800 / sqm. Good grief ... I’m very curious whether they will sell at that price.

Those are real costs though. An example I already cited here: social housing (1400 sqm living space) by a church foundation, completed from 2019 to 2020 in our community in northern Bavaria (40 minutes from Nuremberg or Würzburg), land from the municipality: gifted. Pure construction costs: 3500 / sqm. No developer’s profit. Again: social housing, land gifted. 2019. 3500 per sqm...

In our small town (rural), the condominiums in recent years (new construction) were always in the range of 3100-3500 euros/sqm (excluding parking space, garage, etc.). Now a property is just being completed where the apartments cost about 4500 euros/sqm. (also excluding the aforementioned things). I believe the apartments are (almost?) all gone. So, you're paying a good half a million for a 100 sqm apartment.

Back then you could probably still get financing at 0,x or 1,x. That is no longer possible now. But yes, it’s already insane... I will keep a close eye on it. :)