Declines in construction permit approvals occurred in August.
Sure thing, let's rephrase that for you:
Despite August's arrival, the negative trend in construction permits persisted, but the rate of decrease started to slow down a bit. The Federal Statistical Office stated that 18,300 residential units received approval during that month, representing a 6.8 percent decrease compared to the same month the previous year. In the two months prior, the decrease hovered around 19 percent.
Statistics showed a 19.3 percent decrease in building permits from January to August. The most significant decrease was in single-family homes, with a 26.6 percent drop in new construction approvals. For two-family homes, the decrease was 13.9 percent, and for multi-family homes, it was 19.6 percent.
Germany has seen a consistent monthly decrease in building permits for approximately two years now. This decline has usually been in the double-digit percentage range. The primary reasons for this trend are escalating construction costs and high interest rates at the same time.
The decline in new construction approvals led to the need for exploring alternative solutions, such as obtaining more building permits. Despite the persistent decrease, the request for building permits for residential units slightly improved in August, showing a sign of potential recovery.
