Germany's construction crisis deepens as costs soar and reforms stall
Germany’s construction industry is struggling under rising costs and slow progress. Despite high demand for housing and infrastructure, projects remain stalled by red tape and soaring expenses. Industry leaders have now called for urgent reforms to ease the crisis. The war in Iran has pushed up energy and material costs, adding pressure on builders. Over 80% of construction firms expect procurement prices to rise sharply in the coming months. At the same time, 85.5% of businesses report that the federal special fund has failed to generate more public contracts.
The ‘construction fast-track’ initiative, meant to speed up approvals, has had little effect. Half of the companies surveyed say they have seen no benefit from it. Industry representatives argue that excessive standards and bureaucracy continue to block progress. Tim-Oliver Möller, a leading voice in the sector, has criticised policymakers for not doing enough. He insists that faster approvals, flexible building rules, and lower property taxes are needed to boost affordable housing. The new state government’s coalition agreement includes some of these measures, but Möller warns that promises must turn into action quickly.
The construction sector remains in a difficult position, with high demand but little progress. Rising costs and slow reforms are holding back new projects. Without faster changes, the shortage of housing and infrastructure is likely to continue.
