Financial expert: Rising construction costs threaten housing construction in Hamburg

Financial expert: Rising construction costs threaten housing construction in Hamburg

According to a report from www.abendblatt.de, the real estate market in Hamburg is experiencing an unprecedented increase in construction costs. Construction costs are increasing dramatically, particularly in residential construction, as well as in commercial real estate. This is primarily due to increased material costs and increased regulation through new building codes.

The increased construction costs have a direct impact on the real estate market. It is becoming increasingly difficult, especially for investors and developers, to build profitably. Profit margins are shrinking because construction costs are disproportionately related to rental income and sales proceeds. This could lead to a slowdown in the construction boom and an increase in the price of living space.

Furthermore, the construction industry is also influenced by the increased construction costs. Many construction companies are facing declining profits, which could lead to job cuts in the long term. This in turn has an impact on local employment and the economy as a whole.

It should also be noted that current regulations and political support measures can further increase construction costs. Especially with regard to the energy efficiency and sustainability of buildings, as well as the increasing demands on construction quality. This could lead to an even greater burden on construction costs.

It remains to be seen how the increased construction costs will affect the real estate market and the construction industry in the long term. It is hoped that politicians will take appropriate measures to reduce the burden on investors and developers and to promote the creation of affordable housing.