Roof battens, screws, cables - building materials for real estate are currently becoming increasingly scarce and expensive. This is because many materials are going abroad. This is having a serious impact on the renovation or construction of properties in Germany. If you want to renovate or build a new property before selling it, it is difficult to find tradesmen because they can hardly get building materials or, if they do, then only at very high prices. Even work that has already begun may be significantly longer and more expensive due to the shortage of materials.
While there was a slump in demand for wood at the start of the coronavirus pandemic, the industry is now barely keeping up with production. The situation is similar for other building materials such as metal and plastics. Whether insulation, sheet metal, paint, plastic pipes or insulating materials for cables - many manufacturers are affected by the shortage.
Where does the shortage of raw materials come from?
In addition to the effects of the coronavirus pandemic on the production of building materials, the purchase of raw materials by China and the USA is also causing shortages and significantly higher prices. DIY is also booming. Many people who had saved money for vacations have invested it in patios, garden sheds or carports during the pandemic. The reduction in VAT has also driven the trend. According to the Berliner Zeitung, prefabricated timber construction rose by 20% in November and December 2020 compared to the same period last year.
While a roof batten cost 0.50 euros per meter before Corona, for example, the price in spring 2021 is 1.30 euros - if you can get any at all. Unfortunately, gravel and sand are not "a dime a dozen" either. Although these are developments that began before the pandemic, they have now intensified. Craftsmen and building contractors are having problems fulfilling orders that have already been completed.
When will the situation ease?
Construction experts are hoping that the situation will stabilize over the course of the year - at least as far as the shortage of materials is concerned. However, they hardly expect prices to fall in the short term. It is even possible that prices will remain at the same level once the shortage has been overcome. Many even see the current situation as a brake on economic development in Germany after coronavirus.
What can private building owners do?
It is now advisable for builders to be flexible. One measure could be to reschedule individual construction activities - if possible. In other words, only renovate or build what is currently possible. Construction experts also advise awarding contracts as early as possible. This is because the earlier an order is received, the more time tradesmen have to procure the necessary building materials. This means that longer delivery times have less of an impact on construction progress.
Would you like to know whether refurbishment is currently worthwhile before selling your property? Get in touch with us! We will be happy to advise you.
Further information can be found here:
https://www.capital.de/immobilien/was-die-aktuelle-rohstoffknappheit-fuer-die-bauindustrie-bedeutet
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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