FRANKFURT, April 24 (Xinhua) -- Building costs in Germany have risen due to the Middle East conflict, weighing on the recovery of the construction industry, German media reported on Friday.
On the whole, construction costs in Germany are three to five percent higher than those before the conflict, Thomas Reimann, president of the Association of Construction Contractors in Hesse, was quoted by German news agency dpa as saying.
Price hikes are across the board in the construction industry as concrete, steel, insulation materials and transportation have become more expensive. "We are seeing cost increases almost everywhere."
According to Reimann, the price hike pressure in the construction industry is not going to abate soon. Tim-Oliver Mueller, CEO of the German Construction Industry Federation (HDB), noted that many construction firms plan to raise their bid prices soon as further price hikes are inevitable.
Some fear that the resurgence of inflation may force the European Central Bank to raise interest rates, which will exacerbate the cost pressure in the construction industry.
Germany's construction industry has shown signs of recovery this year after years of stagnation. More building permits have been issued in 2026. Analysts in the industry are concerned that the recent price hikes may put the brakes on new construction. ■