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