In the fight against rising Rents and house prices has not given it, according to the construction industry, also in 2018 and enough new construction. “We should create in the current year, about 300,000 homes,” said the President of the Central Association of the German construction industry (ZDB), Reinhard Quast, on the occasion of the annual balance sheet in the industry. In the next year the number will rise to 315,000 to 320,000.

“320.000 apartments mean a doubling of levels as compared to 2010,” said Quast. “That’s not enough, but the requirement of a minimum of 350,000 homes.”

Union and SPD had agreed in the coalition agreement to create, by 2021, some 1.5 million new homes. This would correspond to about 375,000 homes a year. In order to increase the number of annual new buildings, from the point of view of the construction industry for more tax concessions, more favorable land and types of homes required, only need to be once developed and approved, but in many cases can be built.

the Federal government, States and municipalities more

to build again, Nevertheless, the industry views associations to be optimistic on the coming year. The order books of construction companies are as full as never before. With a value of 47.6 billion euros, the backlog of orders in September to 14 percent on the strong prior-year value.

The turnover in the construction industry will again rise by six per cent to 128 billion Euro, predicted the Federation of the German construction industry (HDB) and the ZDB. The number of employees is expected to increase by two per cent to 850,000.

Regardless of the economic slowdown, the commercial construction is expected to grow – from factories to office buildings – to a high level. Here are the associations predict an increase of six per cent, after it should be in the end of the year, seven per cent. “While the growth have been revised expectations for the German economy down,” it said. Would be affected the construction industry but if the industry would drive companies due to a deterioration in sales expectations abroad, their investments back home. Nothing was seen in the current investment surveys.

When it comes to public construction, the associations are expecting a growth of six per cent, 2018, the increase was five percent. “After long years of reluctance to invest, the public sector is a significant growth of construction activity in the Federal government, the länder and the municipalities is now,” it said. The coffers of the Public sector through increased tax and contribution revenue are well filled.

construction rejects allegations of profit maximization

For developers, it is always more expensive. After a Plus of 3.6 percent in the previous year, 4.5 percent more cost to Build this year, as the President of the main Association of the German construction industry, Peter Hübner said.

the high demand is reflected in housing apply in the face of low interest rates as a good money investment. Hübner dismissed but suspicions that the construction companies took advantage of the high demand, in order to maximize their profits. Building materials such as concrete, steel and Bitumen for roads had become considerably more expensive, said Hübner. “You don’t need to believe that the rising prices operate directly on the margins of the construction companies.” The companies are finally able to price their risks appropriately.

mmq/Reuters/dpa