A Lift in Housing Construction Orders for Bavaria: A Tiny Victory Amidst Struggles
Increased Demand for Budget-Friendly Homes - Escalating demands for residential construction services
With a glimmer of optimism, the construction sector in Bavaria has seen a surge in new orders for January. According to the Bavarian State Office of Statistics, construction companies received around €353 million in orders, marking a substantial increase of over 33% compared to the previous year. This optimistic update was announced by the Fürth authority. The total order intake, including high-rise and civil engineering, rose by 15% to approximately €1.6 billion.
The housing construction industry, however, has been facing a downward trend across Germany since 2022, following the conclusion of the zero-interest phase. Economists anticipate a continuous decrease in annual new construction figures for this and the subsequent year due to a dramatic decrease in building permits. Despite the increase in January, the adjusted order intake, considering inflation, still lagged behind the 2021 levels, as per the state office.
Turnover in January, while revealing the overall picture, paints a dismal image for housing construction. The state office reports a significant 13.6% rise in overall turnover to €1.05 billion. Although not adjusted for inflation, this figure is above the inflation rate of last year. All construction sectors recorded growth, with the exception of housing construction, which experienced a decline of 2.6% in turnover.
- A ray of hope amidst struggles
- Housing construction
- Bavaria
- State Office
- Fürth
- The Fürth authority announced an increase in construction orders for January in Bavaria, while the housing construction industry continued to struggle across Germany.
- Despite the 13.6% rise in overall turnover in January, the adjusted order intake for housing construction in Bavaria still lagged behind the 2021 levels according to the State Office.
- The State Office reports a decline in housing construction turnover, making it the only construction sector with negative growth in January.
