Housing construction in Germany is far too expensive

The sharp rise in construction costs has put the brakes on residential construction. Around half of the companies are complaining about a lack of orders. Overall, however, new residential construction in Germany has long been very expensive compared to the rest of Europe. Taxes and levies account for a third of the costs.

Housing construction in Germany is more expensive than in many other European countries. This is the result of a recent analysis published by the global property services provider CBRE. In comparison with Finland, France, the Netherlands, Austria, Poland and Sweden, the analysis shows that ancillary construction costs are highest in Germany.

Germany is a high-price country for new residential construction. This is due less to land prices than to the construction costs themselves. New flats in Germany cost 5,150 euros per square metre and are therefore more expensive than in many other European countries. Almost a third of these costs, around 1,500 euros, are caused directly by taxes and public charges.

The prime costs were compared, which are made up of the land costs, the construction costs, the costs for the outdoor facilities and the ancillary construction costs. The prime costs in Germany are slightly higher than in France and Finland (both 5,000 euros) and significantly higher than in Poland, which has the lowest costs of the countries surveyed at 2,130 euros per square metre. At 3,030 euros, the costs in Austria are also significantly lower than in Germany, as well as in the Netherlands (4,240 euros) and Sweden (3,710 euros).

In Germany, the costs for the actual construction, i.e. the building itself, are particularly high. They amount to 3,420 euros. Only in Finland are they slightly higher at 3,750 euros.

The German government has responded to the current situation and adopted a 14-point plan for the construction and property industry. Among other things, this includes amending the German Building Code and a special regulation that will enable cities and municipalities with tight housing markets to simplify and accelerate the construction of affordable housing by the end of 2026.

(Photo: Analogicus, Pixabay)