Construction Boom Continues: More Apartments on the Way in Germany
Rise in residential developments - Unabated growth persists - Continuing rise in housing construction: momentum persists
Hey there! Check this out - the construction sector in Germany is seeing a revival! In April alone, authorities gave the green light to the construction and renovation of a whopping 18,500 apartments, marking a 4.9% increase compared to the same time last year. Of these, 15,000 will be brand-new buildings, an impressive 5.1% increase compared to April 2024, as reported by the Wiesbaden statisticians.
Let's take a look at the numbers: from January to April 2025, a total of 73,900 building permits were issued in the residential construction sector. That's a 3.7% increase compared to the previous year. But here's the twist - there's a bit of a standstill in the construction of multi-family houses, whereas single-family homes are seeing more action.
You might be wondering why this "construction boom" is happening now. Well, affordable housing in urban areas has been scarce, and the new federal government has made building more new apartments a top priority. In fact, the previous SPD-led government pledged to build 400,000 new apartments per year in Germany, but they never quite hit that target.
Last year, the number of permits issued took a nose-dive, almost dropping by 17% to the lowest level since 2010. Only 215,900 new units were given the go-ahead.
To speed up the construction process, the federal cabinet is planning to pass a law called the "Construction Turbo" on Wednesday. This legislation will allow municipalities to expedite the approval process by deviating from zoning plans.
The housing construction sector in Germany has been in crisis due to high construction costs and a shortage of skilled workers in the construction industry.
- Uptrend
- Building permit
- Germany
- Housing construction
- Federal government
- New apartments
Realistic Optimism for a Housing Recovery
While this recovery is good news, don't get too excited just yet. The downtown in 2024 was pretty significant, with the number of permits falling by almost 17% to the lowest level since 2010. Authorities approved just 215,900 new units. So, while the early 2025 data shows a slight positive signal, it's still fragile and below long-term demand levels.
Political and economic constraints have played a major role in limiting building permits andconstruction starts. But, hope is on the horizon! The new law, the "Construction Turbo," is aiming to simplify and speed up the permitting and regulatory approval process to boost construction activity.
This situation reflects ongoing pressures in the German housing market, especially in high-demand regions like Bavaria, where property prices continue to rise due to scarcity despite reduced building activity. Stay tuned to find out more about the "Construction Turbo" and whether it can help turn things around!
[1] "Ausgerechnet Bauboom in Deutschland? Die Oscar-Preise der Immobilienbranche," Wirtschaftswoche, 21 Mei 2025, https://www.wiwo.de/wirtschaft/immobilien/boom-immobilien-boom-die-oscar-preise-der-immobilienbranche-11409235.aa-treffpunkt-aktuell.html[2] "Baugenehmigungen im Jahr 2024: Ein Rückschritt," Nachrichtenagentur der Wirtschaft, 10 Januari 2025, https://www.nw.de/bw-journal/bau-und-immobilien/baugenehmigungen-im-jahr-2024-ein-rueckschritt,bwj-immobilien11404679.aa-treffpunkt-aktuell.html
- As the "construction boom" in Germany continues, a total of 73,900 building permits were issued in the residential construction sector from January to April 2025 – a 3.7% increase compared to the previous year.
- The ongoing pressures in the German housing market, particularly in high-demand regions like Bavaria, have led to rising property prices due to scarcity despite reduced building activity.
- To boost construction activity and speed up the permitting and regulatory approval process, the federal cabinet is planning to pass the "Construction Turbo" law, which aims to deviate from zoning plans and simplify the approval process for new apartment construction.
