According to the Berlin-Brandenburg Statistics Office, the cost of building new residential properties in Berlin rose by 1.9 percent year on year in August 2015. The month-on-month increase from July was 0.6 percent.
The differences between individual trades were substantial.
Winners and losers by trade
Painting and decorating saw the largest price increase at 5.8 percent year on year. Metalwork rose by 5.2 percent, roller shutter installation by 4.8 percent. Carpentry and timber construction (up 3.6 percent) and waterproofing work (up 3.2 percent) also increased noticeably.
Screed work was the exception, falling by 1.9 percent. Drainage channel work (down 0.4 percent) and shoring work (down 0.2 percent) saw only marginal decreases.
Maintenance costs also rose
It was not just new builds that became more expensive. Maintenance work on existing residential buildings rose by 2.4 percent, cosmetic repairs by as much as 2.7 percent. For owners planning renovations in 2015, refurbishments turned out noticeably pricier than the previous year.
Background: growing demand for construction services
The price increases reflected the growing demand for housing in Berlin. Construction firms were able to raise prices because their capacity was increasingly stretched. For investors, higher building costs meant tighter budgets for new build and renovation projects.
At the same time, the higher production costs could be passed on to buyers in the Berlin apartment market, since demand was strong enough. Those who placed construction orders early in 2015 were able to lock in cost advantages before further price rises.
