Building and housing is a future topic for the new federal government. The construction industry is facing major challenges. Building permits have fallen for the third year in a row, construction companies are complaining about a lack of orders and housing is scarcer than ever before.
In 2024, the construction of 215,900 flats was approved in Germany. According to the Federal Statistical Office, this was 16.8 per cent or 43,700 fewer homes than in the previous year. This means that the number of building permits fell for the third year in a row. The last time fewer new homes were approved was in 2010. The decline in single-family and multi-family homes was particularly sharp - which is currently a painful realisation for anyone looking for a home.
Never before have so many companies in the residential construction sector complained about a lack of orders, reports the ifo Institute. 57 per cent of companies reported a lack of orders in January 2025, compared to 53.6 per cent in December. This is the highest figure ever recorded. "The crisis in residential construction now seems to have become the norm," says Klaus Wohlrabe, Head of ifo Surveys. "Even the ECB's interest rate cuts have so far failed to ease the situation." The number of completed flats across Europe in 2025 is at its lowest level since 2015. 1.5 million units are expected to be built in 2025, which is 5.5 per cent fewer than in 2024.
The "Zukunft Bau Kongress 2025" will address the various facets of this social task and reflect on new forms of cooperation between all disciplines involved in construction. The congress will take place on 21 and 22 May 2025 at the World Conference Center Bonn (WCCB). As one of the most important building uses, residential construction will take centre stage: How can residential construction be developed in a socially sustainable and architecturally high-quality manner?
In view of the provisional building permit figures, the property industry is calling for a new start in housing construction policy. "Germany must not get used to a housing shortage (...)", says Aygül Özkan, Managing Director of the ZIA. "We now urgently need a political alliance in favour of acceleration, deregulation and a reduction in bureaucracy".
Photo / graphic: © Selvazzano Dentro, Pixabay
