Number of the month for April: 1960

It was last levied in 1960, and is now slated for reintroduction in 2025 with the new reform. This refers to property tax C. It was only collected for two years, 1961 and 1962. At that time, the revenue amounted to approximately 50 million Deutsche Marks (DM). This is equivalent to the equivalent of 25,500,000 euros.

Property tax C was levied on undeveloped and building-ready plots of land. This is set to change again from January 1, 2025. The goal of introducing this additional property tax over 50 years ago was to lower building land prices and expand the supply of building land.

According to the Federal Statistical Office, construction and real estate prices have risen sharply since 2010. This is evident, for example, in a comparison of the average purchase prices for building land between 2017 and 2022. In the first quarter of 2017, the price per square meter was €147.38. Five years later, it had already reached €236.18 per square meter. Within the first and third quarters of 2022 alone, the average price increased by almost €25.

Looking at producer prices for commercial products in the construction industry over the last three years, a significant price increase is also evident, attributable to the crises of recent years. On average, costs rose from €103.80 in 2020 to €152.40 in 2022.

It is impossible to say with certainty how the current price trends in the construction and housing sector will develop and when costs will fall again. Fulfilling the dream of homeownership and combating the housing shortage will remain a challenge for some time to come.

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