Building Permits Decline as Housing Construction Stalls in Germany
Germany: The German housing construction sector faces continued challenges as building permits dropped significantly in May, with 24.2% fewer permits granted compared to the previous year, and a total decrease of 21.5% in the first five months of 2024. High interest rates and construction costs have stalled new construction, with the number of building permits for single-family homes and multi-family homes dropping by 31.5% and 21.7%, respectively. Tim-Oliver Müller, CEO of the German Construction Industry Association, highlighted the need for reduced regulations to stimulate the sector. A study by the Hamburg Institute for Urban and Regional Research revealed that land purchases for housing construction reached a historic low in 2023, further complicating efforts to address housing shortages.
Source: ABS Zeitung