Sharp decline in building permits in Germany continues
The number of building permits continues to fall. In September, the construction of 19,300 apartments was approved - 29.7 percent less than in the same month last year, according to the Federal Statistical Office. In the first nine months of the year, the number of building permits thus fell by 28.3 percent year-on-year. This corresponds to a decrease of 76,900 to 195,100 apartments.
The results include building permits for apartments in new buildings and new apartments in existing buildings. According to the data, there were "significant declines" in all building types except for residential homes. The sharpest decline was in two-family houses, where the number of permits more than halved. The figures for Lower Saxony were not yet available for September and were estimated.
According to the statistics office, the main reasons for the continuing slump are higher construction costs and poorer financing conditions.
In particular, the sharpest decrease in building permits was observed in the construction of two-family houses, seeing a more than halving of approvals compared to the previous year. This downward trend in building permits can be attributed, in part, to the increase in construction costs and the deterioration of financing conditions, contributing to a strong decrease in approvals for new residential buildings in Germany. As a result, two-family houses have seen a notable decrease, with the data indicating a notable decline in the number of building permits issued.
Source: www.ntv.de
