Real estate market: number of building permits continues to fall

The strong Decline in building permits for new apartments continued in September. The construction of 19,300 apartments was approved – 29.7 percent less than in the same month last year, as the Federal Statistical Office announced. In the first nine months of the year, the number of building permits fell by 28.3 percent year-on-year. This represents a decrease of 76,900 to 195,100 Apartments.

“The decline in construction projects is likely to continue primarily due to high construction costs and poor quality Financing conditions contributed,” said the Federal Statistical Office.

There was a 38.4 percent decline in building permits for single-family homes to 37,900 in the first nine months of the year. A decline of 51.9 percent to 11,100 was recorded for two-family homes. The number of approvals also fell significantly for the type of building with the most apartments, multi-family houses, by 27.2 percent to 105,200. Only at dormitories there was an increase of 8.4 percent to 6,200.

The figures for Lower Saxony were not yet available for September and were therefore estimated. The results of the remaining countries have been transmitted. The federal government has actually set itself the goal of 400,000 apartments annually in order to meet the growing demand, especially in large cities.