Strongest decline since 2006: Building permits collapse for apartments by nearly a third – WELT

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a job The biggest drop since 2006

Building permits for apartments collapse by almost a third

Residential construction in Potsdam: The number of building permits has been declining for months Residential construction in Potsdam: The number of building permits has been declining for months

Residential construction in Potsdam: The number of building permits has been declining for months

Source: dpa / Patrick Pleul

The number of building permits has fallen more sharply than at any time since 2006: in April only 21,200 apartments were approved – almost a third less than in the same month last year. Building commitments for single and multi-family homes are also collapsing.

DrThe crisis in German housing construction threatens to worsen further: The number of building permits fell in April due to increased interest and material costs, the most since March 2006. Only 21,200 apartments were approved, thus down 31.9 percent or 9,900 from the previous year, the Federal Office announced. Statistics on Friday. The number has been steadily declining since May 2022.

Statisticians show the downward trend: “It is likely that rising costs of building materials and increasingly poor financing conditions have contributed to the decline in construction projects.” Construction loans increased after eight Interest rate hike by the European Central Bank Significantly more expensive.

From January to April, a total of 89,900 building permits for apartments were issued, which is 27.3 percent less than the same period last year. The figures include liabilities for apartments in new buildings as well as new apartments in existing buildings.

Burglaries also occur in single and multi-family homes

The number of building commitments for single-family homes also fell at an above-average rate in April, down 33.5 percent to 18,300. In the case of two-family homes, there was an even larger drop of 52.1 percent, to 5,300. Numerically stronger type, multi-family homes, the number of approved apartments has decreased significantly.” There was a minus of 27.1 percent to 48,200.

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The construction industry is in crisis

The German Building Industry Association (HDB) expects as many as 250,000 completed apartments at best this year. That would be about 45,000 less than last year and far from it The federal government’s goal is 400,000 new apartments a year. The association warned that “without significant changes to the terms of the framework, the outcome in 2024 is likely to be worse”.

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Real estate association ZIA predicts a gap of 700,000 housing units and 1.4 million apartment seekers for 2025. The reason for this is the lack of construction projects due to the skyrocketing construction prices and the state’s obsession with regulation.

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