Construction prices rise 6.1 percent—the sharpest increase since 2023

Anyone planning to build a house or apartment in Saxony must budget for ever-rising costs: In August, construction prices for new residential buildings were 6.1 percent higher than a year earlier, according to the State Statistical Office. This is the sharpest increase in three years. Both structural work and finishing work are affected.

Maintenance of existing buildings also became 6.1 percent more expensive, while cosmetic repairs in apartments rose by 2.1 percent.

Higher Costs for Labor, Materials, and Transportation

In addition to ongoing increases in labor and material costs, the rise in construction prices is also due to higher transportation costs resulting from current fuel price trends. Consequently, the vast majority of construction services included in the construction price index were quoted at higher prices than in August 2025.

In the structural work for residential buildings, this was particularly evident in pile driving, vibration, and compaction work (up 11.2 percent), carpentry and timber construction work (up 9.9 percent), and drainage and sewer work (up 8.9 percent). The largest price increases in the finishing sector were recorded for insulation and fire protection work on technical systems (up 16.1 percent), precast concrete work (up 10.3 percent), and heating systems and central water heating systems (up 9.9 percent).

Rise Also Affects Commercial Construction and Road Construction

Similar to residential construction, prices for the construction of an office building (up 6.3 percent) or a commercial building (up 6.1 percent) followed a similar trend. In road construction, costs rose slightly more sharply, by 7.4 percent.