German residential construction prices rise 5.5%, fastest pace in 3 years

Residential construction prices in Germany rose 5.5% year on year in August, their fastest increase in three years, according to official figures released Friday.

The increase accelerated from 5% in May, while prices rose 1% over the three-month period, the Federal Statistical Office (Destatis) said.

The figures cover construction work on conventionally built residential buildings and include value-added tax.

Prices for structural work increased 5.4% from a year earlier, led by roofing, which rose 7.6%, and carpentry and timber construction, up 7.2%.

Concrete and masonry work, which account for the largest shares of structural work and the overall residential construction price index, became 4.3% and 4.2% more expensive, respectively.

Earthworks prices increased 6.1%.

Interior finishing costs rose 5.7% year on year, with electrical, security and information technology systems recording a 7.2% increase.

Prices for external thermal insulation systems climbed 5.7%, while heating and central hot-water systems, including heat pumps, rose 5.2%. Metalwork prices increased 5%.

Price increases also extended to maintenance and nonresidential construction.

Maintenance work on residential buildings, excluding cosmetic repairs, cost 6% more than a year earlier.

Prices for new office buildings rose 5.7%, while commercial building construction costs increased 5.5%.

Road construction recorded a sharper annual increase of 6.9%.