Data released last Friday by the German Federal Statistical Office revealed that the number of building permits for apartments in the country decreased by 27% in the first half of the year, further highlighting the troubling situation faced by the construction and real estate sectors.
Amidst the plummeting building permits, some businesses and politicians have called for relaxed support for the sector ahead of a meeting with Chancellor Olaf Scholz next month. In recent weeks, numerous real estate developers have filed for bankruptcy, and data indicates a significant downturn in construction activity and falling residential prices.
In the first half of the year, authorities approved construction permits for 135,200 apartments, a decrease of 50,600 compared to a year earlier. Germany has been striving to achieve its target of constructing 400,000 apartments annually, but progress has been slow.
Tim Oliver Mueller, head of the German Construction Industry Federation, stated that the balance sheet for the first half of 2023 shows an extremely bleak outlook for the residential construction sector.
