Decline in German residential construction persists in March.
The decline in new residential construction in Germany carries on even with heightened demand for living space. Stats from the Federal Statistical Office demonstrate that building permits in March 2024 were considerably less than those in March 2023, and during the first quarter as well.
The Federal Statistical Office states that 14,700 new builds were approved in March, a considerable decrease (27.3%) compared to the same month in the previous year. Generally, building permits for the first quarter were also 25.7% lower than in the same period a year ago. With 42,800 approved in the first three months, new apartments were scarcely a fourth of the number seen the year before.
Smaller homes took a significant hit in the first quarter, with single-family home building permits plummeting by 35.6% to 9,200 and two-family houses dropping by 20% to 3,200. Multi-family houses were also impacted, with a decrease of 22.9% or 8,500 units, resulting in 28,700 apartments.
Though these numbers only take new builds into account, with conversions considered, the total number of approved projects was 53,500. A fifth (22.2%) or 15,200 fewer building permits were awarded by authorities when compared to the same quarter of last year.
Costs for construction projects have surged considerably in the past two years owing to interest rate increases on loans and rises in construction costs. For months, building permits have been in decline. Building and real estate associations are urging for more state subsidies to address the ongoing housing crisis, specifically in urban areas.
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Despite the high demand for residential housing, the new building slump in Germany continues into April, mirroring the decline seen in March. The number of approved building permits for residential construction in April 2024 fell significantly compared to April 2023, making room for a new residential building that caters to the growing population needs.
Source: www.ntv.de
