Construction costs for new housing are increasing in Germany

The Federal Statistical Office of Germany (Destatis) has released data on construction prices for new housing in February.

Accordingly, construction prices for new housing in the country increased by 15.1% in February compared to the same period last year.

In November 2022, when the previous statistics were announced, the construction prices for new housing increased by 16.9% annually. In May 2022, it recorded the highest increase in more than 50 years with an increase of 17.6%.

Analysts said the "tremendous" increase in construction costs for new housing after a noticeable increase in interest rates has led potential homeowners and investors to avoid planned projects.