Construction costs are currently skyrocketing

This seems to be the thread for everything, so here is my question... You often hear about construction costs of 3000€/sqm. We originally wanted just under 130sqm of living space and are now possibly planning to switch to 100sqm or 90sqm. Does this rule of thumb of 3000€/sqm still apply to smaller living areas, or is there a point where you simply can’t save any more costs by having less space, or the savings become hardly noticeable?

This here seems to be the thread for everything, so here’s my question... You often read about 3000€/sqm construction costs. We initially wanted just under 130sqm living space and are now possibly planning to switch to 100sqm or 90sqm. Does this rule of thumb of 3000€/sqm still apply for smaller living spaces, or is there a point where you simply cannot save any more costs by having less space, or they become barely noticeably cheaper?

Built correctly, a theoretical building with 1 sqm would probably be the most expensive conceivable ;)

Interhyp published a press release today - slight relaxation after a sharp increase. Institutes' forecast - short-term sideways or rising, but over the year a slow, further increase towards 4%.

Sure, what else should they write. If they said it would go down to 2 by the end of the year, no one would currently take out a loan.

Of course, what else are they supposed to write. If they write it will go down to 2 by the end of the year, currently no one would conclude a financing anymore.

Of course, one must read all these status reports with a certain degree of caution. It is like the announcement of price increases based on asking prices, and the retreats around the fact that the real estate market turned in Q1&Q2.

This seems to be the thread for everything, so here’s my question... You often hear about construction costs of 3000€/sqm. We initially wanted just under 130sqm of living space and are now possibly planning to go down to 100sqm or 90sqm. Does this rule of thumb of 3000€/sqm still apply with smaller living spaces, or is there a point where you simply can’t save any more costs by having less space or they become only marginally cheaper?

You have a few things that remain the same. Even if you build smaller, you still have utility connections, a front door, a staircase. The heating is often the same, the kitchen appliances as well, and usually the bathrooms too. If you shorten a 10x10 house by 1m, you save 2 running meters of exterior wall (which is not just bricks but also plaster, etc.) but lose 10sqm of floor space. So you save significantly less than what is suggested. Accordingly, you save less and less per square meter as the house gets smaller.

Currently in all media:

On German construction sites, prices have risen faster than in more than 50 years. According to the Federal Statistical Office, in May prices for construction services including VAT were 17.6 percent higher than a year earlier. This was the highest increase since May 1970, when they rose by 18.9 percent over the year, the authority reported on Friday. In the previous reporting month of February 2022, the increase was 14.3 percent.

The reasons are scarce and expensive materials as well as high demand. The price increase was particularly strong for metal construction work (+23.6 percent) and concrete work (+23 percent). Below-average increases were recorded for earthworks (+14.8 percent) and masonry work (+12.8 percent).

Also very enlightening is the view over the last 10 years