Construction costs are currently skyrocketing

We recently bought a house built in 1977. Not messed up, what was done was done by good craftsmen. We are currently bringing it up to a good standard in terms of insulation, electrics, plumbing, etc. Great location, super layout for my small family, nice neighbors we have known for a long time (living in the street for 20 years). One should be aware that material costs also play a crucial role. Doing the electrical and water work myself is too risky for me. Everything suits us, new buildings with similar parameters (120 sqm living space, 250 sqm plot, but not basement, no garage) recently (February 2022) went for an insane 850k€. We won’t reach that price with our house, but it’s also not KFW (some program) or anything like that, but also not a tin hut.

My neighbor built a bungalow in EL with 125m2 for 200k in 2020.
A good 700m2 of land and the price there is only somewhere between 70-90€/m2, but you have to put that into perspective.
Including additional construction costs, land, etc.

In GruBo alone, the price per square meter is around €1,000. If you do nothing, it gets paid. And the nice areas have long been built up. It's then more likely near the highway, tram, and other noise sources.

Yes, Bavaria near Munich probably, there alone the land makes the difference. Salaries are then correspondingly, if a street tree worker can repay his single-family house property with 650/month, that felt like luxury.

The craftsmen's salaries are correspondingly higher then too ;)