property
The number of building permits also fell sharply in October
There is no end to the downward trend in building permits. The numbers also fell significantly at the start of the fourth quarter. A popular type of building in particular is affected.
The downward trend in building permits in Germany continues unabated. In October, the construction of 18,800 apartments was approved, 18 percent less than a year earlier, as the Federal Statistical Office announced. From January to October, a total of 175,800 apartments were approved – almost a fifth (19.5 percent) less than in the same period last year. The federal government’s annual target of 400,000 new apartments is now a long way off.
The figures from the Federal Statistical Office include both building permits for apartments in new buildings and renovations. The approvals are an important indicator with regard to the housing shortage in cities: what is not approved will not be built later. Housing construction is in crisis following a rise in interest rates and high construction costs.
Sharp decline in single-family homes
The number of building permits for single-family homes fell particularly sharply in October – by almost a quarter (23.6 percent) to 31,800. The number of approved apartments for two-family houses fell by 13.6 percent to 10,700. Even for the largest type of building in terms of numbers, apartment buildings, the number of approved apartments fell significantly by a good 22 percent to 92,000.
The construction industry association HDB spoke of a disappointing interim result at the end of the year. “After many months with high double-digit declines, we are now at the level of 2012,” said Managing Director Tim-Oliver Müller. The agenda of the next federal government must include promoting affordable housing, reducing bureaucracy and limiting state-imposed building requirements.
dpa
Source: Stern
