German construction costs rise well above inflation

Building costs in Germany have surged again, with August prices for the construction of conventional residential buildings up 5.5% on the same month last year, according to the statisticians.

A faster rate of price increase in the sector was last recorded three years ago. Within the observed three-month period, prices climbed by one percentage point, the Federal Statistical Office (Destatis) in Wiesbaden reported on Friday.

Roofing work in particular saw a sharp year-on-year increase, rising by 7.6%, while the cost of carpentry and timber construction work grew by 7.2%. Price increases for brickwork (4.2%) and concreting (4.3%) were not as pronounced.

For interior work, electrical installations and heating systems were the main drivers of the increases. This resulted in maintenance work costs on residential buildings rising by 6% over August 2025.

The price trend, which is well above the average 2.9% increase in consumer prices, does not only affect residential buildings. Prices in road construction were 6.9% higher than in the previous year, while office buildings were up by 5.7%.