Grömmer, Franz

Diploma Thesis:
1827

Topic:
Analysis of construction cost and price developments in a historical-political context

Editor:
Franz Grömmer

University Professor Responsible:
Univ.-Prof. Dr.-Ing. Peter Jehle

Supervisor:
University Supervisor: Dipl.-Ing. Natalia Bienkowski, LL.B.

Editing Period:
06/2021 until 03/2022

Abstract:
This paper examines the development of construction costs and prices since 1950. Initially, the focus is on the market economy in the Federal Republic of Germany, for which a comparatively broad database is available. In a second step, this was also done for the planned economy of the GDR, which existed until 1989, through an extensive evaluation of older statistical yearbooks. It could be shown that regardless of the political or economic system, the expenditure required for the construction of residential buildings increased in the long term. Compared to the starting year 1950, this is not least due to higher construction quality. It is also demonstrated that construction prices are less related to population figures than to the amount of space required per capita, which has been rising continuously since the 1950s. In addition to the presentation of the historical development, other causes for this are also illuminated. The growing complexity of building law, in conjunction with building standards, has led to numerous cost increases, also in the area of planning services. The same applies to the successive tightening of energy requirements over the past twenty years. Particularly against the current background of the Ukraine crisis and the resulting consequences between the Western hemisphere and Russia, it can be assumed that costs will continue to rise in the future. The primary goal must therefore be to increase the output of land production. Possible approaches are strict simplifications in building law and standards in order to achieve further industrialisation.