German construction performed better than expected in H1 2025

Official figures showed a 7.2% real-term increase in orders for the first half of the year compared to the same period in 2024.

Residential construction orders jumped by 9.5% over the half year, although the volume is still 31% below the 2021 level, according to Germany’s largest construction association, Bauindustrie.

Meanwhile, there was a real-terms decline in orders of 5.2% over the half year in the roadbuilding sector, after Autobahn, the federal agency in charge of Germany’s highways, instituted a tender freeze earlier this year.

Construction industry turnover increased by 2.2% in real terms over the half year. Turnover in residential and road construction dropped by 4.% and 3.7% respectively but civil engineering – thanks to strong orders in the rail sector – recorded an 11.4% increase.

Commenting on the figures Bauindustrie’s managing director Tim-Oliver Müller said, “The half-year results for the entire construction industry are better than we originally expected. Overall, orders and revenue increased in the first six months. However, it must be taken into account that the increase occurred at a low level, and revenue is even negative in real terms after four years – so there is unfortunately no reason to celebrate yet, especially since road construction has virtually collapsed.

“This is where the stalemate of the second quarter becomes apparent. The turnaround of the federally owned Autobahn GmbH, lifting the tender freeze and approving the missing funds after all, is encouraging, but will only have a positive impact on construction activity and thus on the figures in the second half of the year. This is at least to be hoped for.”