The German construction industry has so far come through the crisis much better than many other economic sectors. In the current year 2020, the markets for refurbishing and maintenance have developed more positively than new construction. While there has been much discussion in recent years about limited capacities among the craftsmen and the postponement of refurbishment projects, there is currently a clear increase in refurbishment activity. This is the conclusion of the current B+L renovation study, which the market research institute presented in a web conference on 11th November 2020. For instance, the frequency of bathroom renovations has increased by +7.0 percentage points compared to the year 2018. A significant increase is also evident in the renovation of roof windows or the replacement of heating systems.
B+L renovation study: Comparison of frequencies of selected renovation measures 2018 and 2020
[in % compared the B+L renovation Study 2018]
The refurbishment market is changing as can be seen not only from the frequency of measures but also from changes in the target groups. “The current renovation study shows a trend that already started in 2016. The target group of renovators from the baby boomer generation (born in the 1960ies) is gaining importance. As our study results show, the age structure of the renovators has changed. This is accompanied by far-reaching
changes in terms of product preferences or the implementation of measures (Do-it-yourself vs. Do-it-for-me). ” says study author Marcel Dresse.
In the last 6 years, the share of renovators older than 45 years has increased from 39.7 % in 2014 to 60.8 % in 2020. While in 2014 the younger target group of home buyers (and renovators) of existing properties was the primary target group in the market for private refurbishment, the significantly older homeowners are currently the central players in the market. This older target group does not renovate due to the purchase of a property, but rather due to wear or in order to increase comfort of living or create accessibility for the next stage of life.
B+L Renovation Study: Age groups over time
Although the older target groups tend to demand complete services consisting of advice, products and installation more often, the current B+L study shows an increase of DIY for many measures. The COVID 19 pandemic has led to more time being spent at home and to people cancelling holidays. Homeowners have used this additional time (e.g. home office, “holiday” in their own garden) to carry out renovation measures themselves more often instead of having the measure carried out by professional craftsmen. The reduction of contacts and the unwillingness to have “strangers” in their own home may also have led to the increase of DIY. These changes have an impact on product purchasing: The DIY stores were able to benefit from the trend towards more DIY and significantly increased their sales in 2020.
The renovation markets are thus the winner in the Corona year 2020. According to forecasts by B+L, this trend will continue in the upcoming years.
About the study:
This year, the B+L renovation study surveyed a total of 22 renovation / refurbishment measures or building sections in detail. The study is published every two years and was first conducted in 2010. Many details can thus be viewed in a longitudinal section of the last 10 years. For the study, a total of n = 1,062 private renovators were interviewed in an online survey on the measures carried out, budgets, sources of information, etc. A telephone survey of companies in the housing industry (Deutsche Wohnen, Vonovia, LEG Immobilien, etc.) is the data basis for the additional information on the refurbishment activities of the German housing industry.
Source: More information and the possibility to order the complete study: https://www.bl2020.com/DE/shop/renovation
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