New housing development: The number of building permits continues to fall.
Image: Sven Simon
Although demand is increasing, new construction activity in Germany is falling. The construction industry is horrified. Meanwhile, Construction Minister Klara Geywitz warns once morest “black painting”.
DThe need for living space in Germany is growing, but new construction activity continues to decline. According to the Federal Statistical Office, last year the building authorities approved 260,100 new apartments, 94,100 or 26.6 percent fewer than in the previous year. Statisticians announced on Thursday that this was the lowest level since 2012. The main reasons for the decline in building enthusiasm are the increased interest rates and higher prices for building materials. The number of building permits for single-family homes fell more than average: by 39.1 percent to 47,600.
The traffic light coalition had set itself the goal of building 400,000 new apartments per year under its leadership. Federal Construction Minister Klara Geywitz (SPD) recently estimated the need for up to 600,000 apartments per year due to the influx of refugees. “The declining number of approvals last year is particularly an expression of the economic conditions that have existed since 2022,” commented Geywitz on the new figures. Over the course of the year, however, there has been a “bottoming out” since late summer. “Black painting is out of place,” said Geywitz. The environment has stabilized.
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