The number of building permits issued in Germany in 2024 reached its lowest level since 2010, indicating the worst crisis in the sector in the country in the last 15 years, Der Spiegel magazine reported, citing data from the Federal Statistical Office.
The number of building permits for residential premises in 2024 decreased by 16.8% (43,700) compared to 2023 and amounted to 215,900. It is noted that during the year, construction developers implemented 21.6% fewer projects, and private individuals built 15.6% fewer houses. A decline in indicators was also reported in the non-residential property sector – there the decline is 17.5%.
The department emphasizes that the number of permits for residential construction in Germany has been decreasing for the third consecutive year. Their number was lower in 2010, when it amounted to 187,600. In 2024, most permits were issued to legal entities (92,300), 68,400. - to individuals. The public sector received 8,800 permits.
According to Spiegel, the main reasons for the crisis in the real estate market are the sharp increase in construction costs and high interest rates on loans. Experts from the Institute for German Economics (IW), whose data the publication refers to, predict that approximately 210 thousand permits for residential construction will be issued in 2025 - this is 45% less than in 2023. "We are about to go through the valley of tears," says IW economist Ralf Henger. According to him, a "huge gap" has formed in Germany between needs and opportunities in the field of housing construction.
The German economy is experiencing a serious crisis. In 2023, the country's GDP fell by 0.3%, in 2024 - by 0.2%. The last time Germany experienced two years of consecutive GDP contraction was more than 20 years ago, in 2003-2004. The Federation of German Industry expects the country's production volume to fall by 0.1% in 2025. If this forecast comes true, the current recession will be the longest in German history.
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