The number of building permits in Germany has fallen. That is according to figures recently published by the Federal Statistical Office. From 2021 to 2022, the number of building permits thus fell by 6.9 percent to 354,400 apartments. The figures reflect building permits for both new and existing homes.
"The difficult mixture of rising interest rates, sharply rising material and construction prices, halted subsidies for new construction and falling disposable incomes has stifled new residential construction, especially from mid-2022," says Tim-Oliver Müller, Chief Executive of the German Construction Industry Association. Reaching the political new construction target of 400,000 homes and creating sufficient affordable housing is therefore no longer possible for a long time.
Tim Oliver-Müller also expects poor development in the current year: "Due to the insufficient new construction subsidy of 1.1 billion euros, stricter energy efficiency requirements and high interest rates, housing associations in particular will not be able to invest." The CEO assumes that a maximum of 250,000 apartments can be completed in 2023.
Source: destatis.de/bauindustrie.de
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