Germany Witnesses Slump in New Construction Permits

Germany: In April, the Federal Statistical Office in Wiesbaden reported a significant drop in new construction permits in Germany, amounting to 14,300—a 17% decrease from the previous year. Including apartment conversions, the total permits stood at 17,600, also down 17% annually. This decline highlights ongoing challenges in addressing Germany's housing shortage, particularly in major cities where affordable housing is scarce.

The rise in interest rates and higher construction costs over the past two years have contributed to the reduction in building permits, which have been decreasing for months. Construction and property industry associations are urging for increased state subsidies to alleviate the housing crisis, especially in metropolitan areas. Permits for single-family homes dropped sharply by 32.5% to 12,300, while permits for apartment blocks, the largest building type, fell by 20.2% to 38,500 flats.

Source: The Federal Statistical Office, Germany