German Housing Construction Costs Rise in February Despite Mixed Sector Growth
Economy / Finance

German Housing Construction Costs Rise in February Despite Mixed Sector Growth

The cost of newly constructed, conventionally built residential buildings in Germany increased by 3.3 percent in February 2026 compared to February 2025. This marks an increase from the 3.2 percent rise reported in the previous comparable month, November 2025, according to data released by the Federal Statistical Office (Destatis) on Friday. All prices cited include VAT and relate to construction work.

Looking specifically at the costs for the structural shell of residential buildings, prices rose by 2.7 percent between February 2025 and February 2026. Concrete work and masonry work constitute the largest components of the structural shell costs and the overall index for new residential construction. While concrete work prices increased by 1.6 percent year-on-year, masonry work saw a stronger increase of 2.0 percent. In other key areas, roofing work was 4.0 percent more expensive in February 2026 than in February 2025. Earthworks costs rose by 3.5 percent over the same period, and the costs for roof and wood construction increased by 5.5 percent.

The cost of fit-out work in February 2026 was 3.8 percent higher than in the previous year. Within this category, costs for heating systems and central water heating units (including heat pumps) rose by 4.2 percent. These two components, alongside metal construction work, account for the largest share of the construction price index for residential buildings. Prices for metal construction work increased by 3.0 percent. Furthermore, the costs for electrical, safety, and IT systems-which include items such as electric hot water dispensers and communication systems-increased by 5.4 percent. Similarly, the prices for thermal insulation composite systems rose by 3.3 percent.

In addition to building construction costs, the prices for maintenance work on residential buildings (excluding cosmetic repairs) were also reported, showing a 4.1 percent increase in February 2026 compared to the preceding year.

Separately, the new construction prices for office buildings rose by 3.6 percent between February 2025 and February 2026, while the costs for commercial operational buildings increased by 3.4 percent. The federal office also reported that road construction prices climbed by 3.7 percent in February 2026 compared to February 2025.