Building permits rise - Uptrend in owner-occupied homes - Germany's Residential Construction Sees Hope in Rising Permits
Germany's residential construction is grappling with a deep crisis due to soaring interest rates and construction costs. In 2022, only 251,900 units were completed, the lowest since 2015. However, there's a glimmer of hope in the increasing number of building permits.
Last year, authorities approved 79,100 multi-family homes, a 4.9% rise. From January to August 2023, a total of 151,200 units were approved, up 6.5% year-on-year. Notably, single-family home permits surged by over 15% to 29,300. Sebastian Dullien, from the Institute for Macroeconomics and Conjuncture Research, sees this upward trend continuing.
August 2023 saw a 5.7% increase in building permits, with 19,300 units approved. Despite these positive signs, the construction industry is eager for state funding to boost residential building. Affordable housing, particularly in urban areas, remains scarce, and the government is pushing for faster approvals through its 'construction turbo' initiative.
While Germany's residential construction faces challenges, the rise in building permits signals potential growth. The industry is optimistic about state funding and the government's acceleration efforts. However, the deep crisis in construction is yet to be fully resolved.
