property
Again approved more apartments – but the construction interest rates rise
After a deep break -in, more apartments are granted again. But the upward trend could prove to be brief: with the federal government’s billion -dollar financial package, the costs for house builders increase.
Lightblows for the crisping housing in Germany: The number of building permits increases again after a long decline. In January, 18,000 apartments were approved by the authorities – 6.9 percent or 1,200 more than in the same month, as the Federal Statistical Office in Wiesbaden announced. However, the federal government’s planned billion -dollar financial package threatens a setback: in the course of this, the construction interest rates have increased vigorously, which increases loans for house builders and real estate buyers.
With the increase in January, the number of building permits has grown for the second time in a row after there was already a good 5 percent of the previous year in December. Previously, the permits had been going downhill since April 2022. In particular, the promotion of social housing has recently proven to be an anchor for stability for the construction industry, said a spokeswoman for the Federal Ministry of Building.
Recovery of the lowest level since 2010
The figures of the Federal Statistical Office contain both building permits for apartments in new buildings and conversions. With regard to the lack of housing in cities, the permits are an important indicator: what is not approved is not built later. In 2024, the number of building permits fell by almost 17 percent to 215,900 – the lowest status since 2010.
In January, the number of building permits for single -family houses rose particularly strongly, they increased a fifth by a good fifth (21.7 percent). There was an increase of 5.8 percent for apartment buildings. In contrast, a decline of over ten percent was recorded in the permits for two -family houses.
Building interest rates are shooting up due to debt package
Housing has been in the crisis in the face of increased interest rates and high construction costs. In the meantime, construction interest rates had fallen, which had boosted the demand from consumers after construction finance.
However, the planned, hundreds of billions of euros from Union, SPD and Greens have recently provided a rapid increase in the capital market interest – in the course of this climbed the construction interest.
According to the Frankfurt FMH financial advice, interest rates for construction financing with ten years of term were recently 3.7 percent. A week ago it was 3.58 percent and 3.2 percent three months ago.
The biggest increase since the financial crisis
The analysis company Barkow Consulting recently spoke of the strongest weekly rise since the financial crisis 18 years ago. Since house builders and real estate buyers take hundreds of thousands of euros in debt, even small interest rises are expensive.
The year for housing is not a good star, said Tim-Oliver Müller, managing director of the construction industry association HDB. “Housing construction thus continues to suffer from the poor framework and the restraint of investors – despite the high need for new building.” A reliable construction funding from the future federal government and less bureaucracy, for example, is necessary, for example by harmonizing the 16 state building regulations.
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dpa
Source: Stern
