Construction Costs Surge in Thuringia, Driven by Material and Energy Prices

Residents and developers in Thuringia, Germany, face significantly higher construction costs, with prices for new residential buildings climbing 5.5% in May compared to the same month last year, according to the State Statistical Office in Erfurt.

The upward trend is not limited to year-over-year comparisons; construction performance prices also saw a 2.5% increase between February and May of this year. Statisticians attribute these rising costs primarily to escalating expenses for materials, labor, and energy. Increased transport costs due to higher diesel prices and price surges linked to the Iran conflict were also cited as contributing factors.

The price pressure is widespread, impacting not only new builds but also maintenance work and both public and commercial construction projects. Raw construction costs rose by 4.6% over the year, while finishing work saw a more substantial increase of 6.2%. Maintenance for residential buildings became 5.6% more expensive, with cosmetic repairs up 4.1% and exterior work costing 5.7% more.

Developments in civil engineering mirror these trends. Road construction prices are 6.4% higher than last year, driven by an 8.2% increase in asphalt surfacing costs and a 5.6% rise in earthworks. The construction of new office buildings has become 5.4% more expensive, and commercial buildings are up 5.2%.