‘A glimmer of hope?’ German construction companies report sharp increase in new orders

Orders increased by 10.3% compared to the same month a year before (after being seasonally and price adjusted).

There was a sharp increase in residential construction orders, which jumped by more than 36% in January 2025. In building construction, they were up about 10%, and civil engineering orders rose 14%.

“The construction year begins with a glimmer of hope,” said Felix Pakleppa, managing director of German construction association Das Deutsches Baugewerbe.

But he warned the sector not to get carried away. “We’re coming from an extremely low level in residential construction; January 2024 was very weak. In addition, several large orders came onto the market this January. The positive rate of change does not yet reflect a trend reversal in residential construction. In terms of building permits, we’ve only seen demand stabilising at a low level so far,” he added.

The association called for more government investment in social housing to stimulate demand further.

Meanwhile, demand in the commercial construction subsector remained subdued but commercial civil engineering improved, with orders there increased by around 28%. “The expansion of infrastructure in rail, power lines, and public transport is maintaining its pace. And this is urgently needed for Germany as a business location,” Pakleppa said.

When it came to construction sales, the industry generated around €5.7 billion in January – an increase of 13%. Residential construction amounted to approximately €1.3 billion (+7.0%), commercial construction to €2.7 billion (+13%), and public construction to approximately €1.7 billion.