The property industry is currently being hit by high construction and material costs. In addition to the usual price increases, inflation, coupled with the Ukraine war and its aftermath, as well as the after-effects of the COVID-19 pandemic, have caused material prices to soar. As a result, construction costs are rising both for new builds and for refurbishment work on existing properties. At a first glance, these figures seem very dismal indeed. Builders who are cancelling entire projects have started to hit the headlines. But industry experts are less panicky about these developments.
Finanzwelt reports on the current situation and the future of the property industry.
