German Home Building Permits Up 7.9% in June, Recovery Remains Uncertain

Germany

GERMANY: Home building permits in Germany rose 7.9% year-on-year in June, offering a modest lift to the country’s struggling property sector. The increase follows a decline in the previous month and comes from historically low levels, as the industry grapples with its most severe downturn in decades. Permits, a key indicator of future construction activity, rose 2.9% in the first half of 2025. However, the statistics office highlighted that permits in the year-earlier period were at their lowest since 2010. 

Industry leaders remained cautious despite the monthly rise. Felix Pakleppa, head of the Central Association of the German Construction Industry, said, “Instead of an upturn, we are seeing the old pattern: slight ups and downs at historically low levels. There is currently no impetus that could pull residential construction out of the crisis.” Similarly, Aygul Ozkan, CEO of the property industry association ZIA, noted that while the figures may seem encouraging at first glance, they remain disappointing overall, with “no sign of a trend reversal.” The data underscores that Germany’s housing market continues to face deep structural challenges despite sporadic improvements in permitting activity. 

Source: The Economic Times