The number of residential building permits granted in Germany last year fell to its lowest since 2010, demonstrating the deep crisis of a real estate market held back by red tape, high construction costs and interest rates.
Data revealed that German authorities gave the green light for just 215,900 buildings, 43,700 or 16.8 per cent fewer than in the previous year.
There is currently no sign of an improvement. According to the German Property Federation (ZIA), the number of approvals for this year is only likely to be around 210,000 - this would be a 45 per cent slump compared to 2023.
There is a significant gap between the housing units needed and those currently being built in Germany, with projections showing that the market will fall short in the coming years. The number of new units being constructed is far below the German government's target of 400,000 new homes annually, highlighting the urgent need for increased construction to meet demand.
