Construction costs are currently skyrocketing

Update on prices. We have an offer from a regional carpenter from January. New bathroom furniture. Offer of €14,400.00 was too expensive for me. Yesterday, a call from the owner asking if I was still interested. Due to cancelled orders, he has free capacity. New price €11,000 flat! I took the deal.

That is what you’d call “customer screwing.”
I would have politely declined. Bought plans/data (planning) for little money and asked 2-3 others. I would have done that beforehand as well, but this place would not get a euro from me. (Except, as mentioned above)

Damn capitalism! How dare he, according to the despicable principle of supply and demand, try to maximize profit. The man belongs sacrificed on the altar of communism.
And then the audacity to lower prices during a crisis and try to win customers. That’s where the fun ends.
Have you already informed the cartel authority?

You can think whatever you want about profit maximization at the customer’s expense, but the attack on is completely exaggerated. He is just saying that he would not do business with this guy, and I fully share this view.
Whoever wanted to rip you off before because they didn’t want your order or because you have an E-Class in the yard—I simply don’t trust them anymore.
I want an honest relationship with my suppliers and craftsmen. An honest refusal—sorry, that doesn’t fit right now—is much preferable to defensive offers.
This trust has been completely lost by the carpenter. Who can give a 30% discount? Obviously only the one who put 50% markup on before.
Of course, everyone has the right to enrich themselves at others’ expense. Of course, that also says something about the character of these fellows.

But I think that will sort itself out. Those who are only after profit tend not to get through bad times so well.

Let's say, if he had openly said beforehand, I will prioritize you against an express surcharge of 25%, otherwise not until a year later, that would at least be a bit more likeable. But ultimately, we mostly have freedom of pricing and contracts. His surcharge is probably still far from being usurious.

What do you see as the decisive point there?

In the projects I know, exclusively the construction cost increases (which are already present - the project is partly calculated and financed 1-2 years before the start of construction) and thus the lack of profitability of the project. Financing costs for a developer measure are manageable since they are always variable (and since the Euribor as a base is still negative, it is set at 0%, and the bank margin is added) and financed under the two-account model. Sales still seem to work quite well, but price increases cannot be passed on to end investors = owner-occupiers or capital investors anymore. There, the increased interest rate then hits the books.

Our windows are (Kunststoff und zwei größere Alufenster) and have become about 21 percent more expensive since the end of 2019.

Pure construction costs: 3500 /m2. No developer profit.
Again: Social housing, land gifted. 2019. 3500 per m2...

Well, social housing was also built here in 2015.. Land was a former railway site in the center, executed according to KfW 55. Mechanical ventilation, heat pumps, etc. Wouldn't the Energy Saving Ordinance have been enough? In addition, there is the rat's tail of administration and regulations, many of which are of course correct.

On the topic of construction costs.

Last year I recommended our locksmith to someone. Offer from May 2021: 2700 euros for about 7 meters of stainless steel railing from Poland. The renovation had dragged on, so now the inquiry again this month on the same basis. 5400 euros..

I recommended our locksmith last year. Offer May 2021: 2700 euros for about 7 meters of stainless steel railing from Poland. The renovation dragged on, so now the request again under the same conditions this month. 5400 euros..

I am currently having a parapet railing installed for the gallery area. Stainless steel with ESG glass panels, 90 cm high. 325€/lfm including installation. I wanted to do it myself, but I can’t get the material that cheaply – it would cost the same in EL. He is also a Pole, but speaks broken German and does good work. My colleague said that three years ago it cost 199 net per meter. But I can’t judge that.