German new residential construction collapses
On taking office, the Ampel set itself a bold target: 400,000 new homes are to be built in Germany every year. Associations and experts are skeptical from the outset. High construction costs put paid to the plans. The number of building permits is on a downward trend.
The number of building permits for apartments in Germany continued its downward trend in September. As reported by the Federal Statistical Office, the construction of 19,300 apartments was approved. This was 29.7 percent less than in the same month last year. From January to September, the number of building permits for apartments fell by 28.3 percent compared to the same period last year. This corresponds to a decrease of 76,900 to 195,100 apartments.
"High construction costs and poor financing conditions are likely to have contributed to the decline in construction projects," explains the statistics office. The results include building permits for apartments in new buildings as well as for new apartments in existing buildings.
From January to September, a total of 160,400 apartments were approved in new residential buildings. This was 31.7 percent or 74,500 apartments less than in the same period last year. The number of building permits for single-family homes fell by over a third (38.4 percent) to 37,900. The number of approved apartments for two-family houses even more than halved (51.9 percent to 11,100).
What remains of the traffic light plans?
The number of approved apartments in the building type with the most apartments overall, apartment buildings, also fell significantly by more than a quarter (27.2 percent) to 105,200. Only residential homes were able to record a positive result with an increase to 6,200 newly built apartments (8.4 percent).
The traffic light coalition originally wanted to build 400,000 new apartments each year, including 100,000 social housing units. However, associations and experts see this target receding further and further into the distance.
The Federal Ministry for Building and Housing has highlighted the importance of addressing the challenges in the residential construction sector, given the collapse in new home construction in Germany. Despite the set target of 400,000 new homes annually, the construction industry is struggling due to high construction costs and poor financing conditions, leading to a decrease in building permits.
Source: www.ntv.de
