The German construction boom will end in 2018, despite lack of housing

A new economic study has said that the construction rate in Germany is likely to slow down in the near future, despite the continuing lack of housing in large cities and increasing housing prices.

The construction of new residences is seeing the end of new constructions,” said the study published on Wednesday by the German Institute for Economic Survey (DIW).

While private and public investments in construction will see only a moderate “growth” in the coming years, DIW believes the fact that construction companies are already working on capacity, putting pressure on prices in a dispute, reports “DW” Transmission Periscope.

The growth of expenses in wages, energy, unworked materials and land is likely to have a major effect,” says the study, meaning that nominal increases in construction investments ranging from $337 billion in 2017 to $392 billion in 2018 will result in a much slower construction of new buildings.

Public-funded construction will actually decline in real terms this year by 1.6 percent.

Ratings by the Federal Office for Building and Regional Planning (BBR) of the German government have said Germany currently needs an average of 350,000 new homes per year over the next three years, although other estimates by the construction industry put the demand rate close to 400,000 annually.

A number of other factors will play in slowing construction, the study revealed, including the lack of time qualified for roofing, electricalists, and instructors.

This situation has also spread across Europe, which means recruiting from other European Union countries is also becoming increasingly difficult, the study showed. /Periscopi/