ᐅ Future Building Cost Trends Over the Next 3-5 Years

The only thing that might happen is that you could end up paying more interest to the bank and lose valuable time repaying the loan if you wait, even though you actually wanted to start building now. Anyone hoping that construction will become cheaper in the future is either naive or has a very good crystal ball. Take a look at the construction cost trends over the past decades and what happened during the downturns in the building industry. In my opinion, many construction loans in this country are much more stable than generally assumed. Most importantly, many Germans have a good amount of disposable income, so demand is unlikely to collapse.

The crisis is already here and will become truly noticeable in the second half of the year. Strangely, people are still talking about a slight economic downturn. Apparently, CO2 is considered more important than wages and basic necessities right now....

In 2-3 years, this will also affect the construction industry. Land prices will certainly not decrease anymore. However, construction costs might possibly go down.

It is quite likely that some financing agreements will fail due to job losses. However, the number will not be high enough to cause a flood of properties on the market. Prime locations will also not become cheaper.

Stagnation is the key word. New construction will no longer be affordable, only existing buildings. Many unemployed people.

There are a lot of pessimists here.
It definitely depends on the sector.
In the construction industry, there is a severe shortage of personnel everywhere, whether craftsmen or engineers. Only the simple jobs that can be outsourced to East or South Asia are sufficiently available. On top of that, not only do the majority of workers seem to be approaching retirement age, but in the coming years, complete chaos will break out—especially in infrastructure.
Interest rates will not rise because that would require the central bank’s key interest rate to increase first. That cannot happen.

I agree with Bookstar; a new build will soon be barely affordable even for the upper middle class.

@Bookstar this is not pessimism. Just look at what is currently happening in the automotive industry and all its suppliers. Bankruptcies, reduced working hours, job cuts...
But this is the backbone of our prosperity. Every seventh job is directly or indirectly connected to it.
In the south, it is probably every third job.
Only we Germans are foolish enough to saw off the branch we are sitting on.

Ah sorry, it was @Lumpi_LE
And it should be “backbone.” Damn typing on the phone.