The economy German residential construction faces "debacle" according to industry association
According to the construction industry, new residential construction in Germany could decline further in the coming year. "There is a threat of a debacle in residential construction next year," said Tim-Oliver Müller, Managing Director of the industry association HDB, to the "Bild" newspaper.
28.12.2024, 03:56
SDA
Hardly any new building applications have been submitted for two years: "We can be happy if 200,000 apartments are completed. There are even some voices saying that it may only be 150,000," Müller emphasized.
The head of the association called for a "real change of course" in housing policy from the next German government "and a clear commitment to building in Germany". In this context, Müller also suggested merging the federal ministries of construction and climate protection: "Good and, above all, affordable solutions can only be created if both are merged and considered together".
In concrete terms, this means a "reliable funding framework that is understandable for everyone, a commitment to simple construction with a clear-cutting of excessive requirements for buildings and bureaucracy", said Müller.
Increased construction costs and high interest rates
Against the backdrop of economic uncertainty and high costs, building permits in Germany have fallen significantly in the year to date. According to the Federal Statistical Office in Wiesbaden, around 175,800 homes were approved between January and October 2024, almost a fifth (19.5 percent) less than in the same period last year.
The number of building permits in Germany has been falling month on month for around two years - usually in the double-digit percentage range. This is due to rising construction costs and high interest rates.
The traffic light government originally set itself the target of building 400,000 new homes per year. However, it never achieved this and is likely to fall well short of it again this year.
