The prices for new residential construction in Germany have risen by 5.0 percent in May 2026 compared to May 2025. This growth rate is slightly higher than the 3.3 percent increase seen year-over-year in February 2025. According to data released by the Federal Statistical Office (Destatis) last Friday, construction costs escalated by 2.4 percent when comparing May 2026 to February 2026. All price figures account for construction services on the structure itself, including value-added tax.
Focusing specifically on the structural shell of residential buildings, costs increased by 4.9 percent between May 2025 and May 2026. Concrete work and masonry work account for the largest share of both the structural shell costs and the overall residential new build index. Concrete prices rose by 3.6 percent, while masonry prices increased by 3.8 percent. Meanwhile, roofing and timber construction costs were notably higher, rising by 7.3 percent, and earthworks saw an increase of 5.4 percent over the same period.
Moving on to internal fitting and finishing projects, prices in May 2026 were 5.1 percent higher than in the previous year. Heating systems and central water heating installations (including heat pumps) increased by 5.0 percent and represent the largest cost component in finishing works, alongside metal construction. Metalwork prices increased by 4.4 percent. Prices for electrical, safety, and IT systems-which include components like electric water heaters and communication setups-saw the sharpest rise at 6.4 percent. Thermal insulation composite systems increased by 5.0 percent.
Beyond new construction, the prices for maintaining residential buildings (excluding purely cosmetic repairs) rose by 5.6 percent in May 2026 compared to May 2025.
In the non-residential sector, new construction prices for office buildings increased by 5.2 percent between May 2025 and May 2026, while commercial operation buildings saw a 5.0 percent rise. Furthermore, road construction prices increased significantly by 6.2 percent in May 2026 compared to May 2025.
