- The revenue generation in the construction sector, particularly in housing construction, is observing a decline.
The construction sector in Hesse has experienced a notable dip in earnings, significantly affecting residential construction. In the first half of 2024, the sector raked in a combined 2.6 billion euros, a 4.9% decrease versus the corresponding period in 2023, as reported by the Hessian State Statistical Office based in Wiesbaden. Residential construction took the brunt of the downturn, recording a 12.1% decrease, resulting in a revenue of 0.6 billion euros.
The construction industry in Hesse showed an improvement in order flow during the initial half of 2024 compared to the previous year: Order volume surged by 4.0% to reach 2.7 billion euros. However, the workforce count reduced by 3.2% to approximately 33,000 employees. These numbers pertain to companies with a minimum of 20 staff members.
Earlier, the Association of South West German Housing Companies (VdW) had highlighted a steep drop in building permits issued in Hesse: In the first half of 2024, a 26.5% less number of permits were granted compared to the previous year. This decline was even more significant relative to 2022, with a decrease of 41.8%. The association emphasized intense price competition in the sector: Construction and maintenance costs had escalated substantially.
Despite the improvement in order flow, the decrease in residential construction revenues as per the Hessian State Statistical Office's statistics still remains a concern. The steep decline in building permits, as indicated by the Association of South West German Housing Companies, further underscores the need for sectoral analysis of the statistics.
