Economy
Forecast: Germany’s bottom in housing construction
Germany is now economically worse in several areas than the European neighbors. Housing is a particularly blatant example.
German residential construction will face a continued descent in the next few years. In its new forecast, the European building research group Euroconstruct predicts shrinking completion numbers by 2027: According to an estimated 250,000 new apartments last year, the economists still expect 205,000 completions this year, and another drop to 165,000 by 2027.
With an expected break -in of housing by 44 percent from 2023 to 2027, Germany would be in European comparison – and also at a considerable distance from the penultimate Austria (-37.3 percent). For the vast majority of Western European countries, the economists await a recovery in housing construction from 2026 after a low point.
Great Britain could overtake Germany despite the smaller population
Euroconstruct is an association of economists specializing in the construction industry from 19 countries – 15 Western European and 4 Eastern European. The Munich IFO Institute is involved on the German side. Housing is not only weak in Germany, but according to the forecast, none of the 14 other Western European countries can be expected to be as bad as in the Federal Republic by 2027.
“In Germany, the high construction costs in particular are currently preventing a rapid market revitalization,” said IFO construction expert Ludwig Dorffmeister. According to the EuroConstruct forecast, Great Britain could overtake German housing with an estimated 210,000 new apartments in 2027, although the United Kingdom has over 15 million fewer inhabitants. The Central Association of the German Construction Industry alarming the forecast.
dpa
Source: Stern
