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2026-02-18 17:50:14
[Germany Building Permits Rebound in 2025, Ending Three-Year Decline] ⑴ Data released by the German Federal Statistical Office on Wednesday showed that the number of building permits rebounded for the first time in three consecutive years in 2025. A total of 238,500 new and renovated residential units were approved throughout the year, a 10.8% increase compared to 2024. Permits in 2024 had fallen to their lowest level since 2010. ⑵ Building permits are an early indicator of future construction activity. In recent years, rising interest rates and high material costs have put continuous pressure on the industry. This rebound has been interpreted by some institutions as a signal of a turning point in the industry. ⑶ The German Construction Minister stated that industry sentiment has improved and investment is increasing. She believes that reduced bureaucracy and subsidy programs will ensure this positive trend continues in 2026. The scientific director of the German Institute for Macroeconomic Policy stated that the construction industry is shifting from a drag on growth to a growth driver. ⑷ However, the German Construction Industry Association warned against premature optimism. "Not all approved projects will actually start construction." Real estate experts predict that the actual number of newly built homes this year may only be slightly above 200,000. A study shows that Germany currently has a housing shortage of 1.4 million units, and to fill this gap by 2030, approximately 400,000 new homes need to be built each year.
