Over the past 2 years, the number of building permits in Germany has fallen by almost 44%.
In April 2024, 17,600 permits were issued, which is 17% less than a year earlier.
"Since May 2022, the number of permits for the construction of apartments in Germany has been going in only one direction: down," said Tim-Oliver Muller, head of the German Construction Industry Federation.
For many years, low interest rates, cheap energy and a strong economy have supported the boom in the German real estate sector, which brought 730 billion euros per year to the country's economy, or about a fifth of output.
The boom is over, as the European Central Bank has greatly increased the cost of borrowing due to rising inflation. Real estate financing has dried up, many projects have stalled, and some developers have gone bankrupt.
Source: ET Realty
