Delivery bottlenecks, scarce raw materials and increased demand made building in Germany much more expensive last year.
Producer prices for individual building materials such as wood and steel have risen on average over the year more than at any time since the survey began in 1949, as the Federal Statistical Office announced on Thursday.
Solid construction timber rose in price by 77.3 percent, roof battens by 65.1 percent and construction timber by 61.4 percent.
"Even the prices for chipboard, for which the waste product sawdust is usually used, rose by 23.0 percent," according to the statisticians.
Steel prices are also driving up costs in construction: Reinforcing steel in bars was 53.2 percent more expensive on average over the year, welded wire mesh cost 52.8 percent more than in 2020. Reinforcing steel is used in shell construction, among other things, to reinforce floor slabs, ceilings or walls deployed.
Metals were a good quarter more expensive overall.
For example, semi-finished products made of copper and copper alloys, which are used for example in heating systems or electrical installations, cost 26.9 percent more.
Energy prices as a driver
Higher energy prices also had a price-driving effect.
Petroleum-based bitumen increased in price by 36.1 percent.
This building material is used in road construction, among other things, but also to seal roofs, buildings and foundations against the ingress of water.
"The overall high energy prices were also a reason for higher inflation rates for chemical products that are widely used in the construction sector," explained the Federal Office.
Producer prices for insulating panels made of plastic such as polystyrene were 20.7 percent above the level of the previous year.
Epoxy resin, an important binder for paints and varnishes, even went up by 28.9 percent.
Construction work also became more expensive along with the building materials.
Overall, the construction of new residential buildings cost 9.1 percent more.
Nevertheless, more permits for new buildings have recently been obtained in Germany – also as a result of government incentives.
The application period for the Baukindergeld ended on March 31, 2021.
This led to a boom in building permits in the first quarter.
From January to November 2021, the number of building permits for new residential and non-residential buildings rose by 4.5 percent to around 145,000, the highest value since 2006. In newly planned residential buildings, around 293,000 apartments were approved from January to November 2021, 1.7 percent more than in the same period last year.
The number of building permits for two-family houses rose by 24.6 percent.
In the case of single-family houses and multi-family houses, on the other hand, there was only a slight increase of 1.2 and 0.5 percent, respectively.