Building permits show signs of turnaround from low level in Germany

Figures from Germany’s Federal Statistics Office showed that in March 2025, a total of 19,500 permits were issued for the new construction and conversion of residential and non-residential buildings, which was a 5.8% year-on-year increase.

In total, 55,400 permits were issued for buildings during the first quarter, a 3.4% year-on-year increase.

Nonetheless, the rise in new permits is set against the backdrop of double-digit declines in 2023 and 2024, and a continuous decline lasting 34 months.

Tim-Oliver Müller, managing director of construction industry association Bauindustrie, called on Germany’s new construction minister, Verena Hubertz, to support the sector within the first 100 days of the new government.

“We must build, build, build. The coalition agreement includes a comprehensive package for housing construction. Now it is time to implement the economic stimulus package for housing construction – it must under no circumstances become a stalemate,” he said.

Meanwhile, Felix Pakleppa, managing director of German construction industry association Zentralverband Deutsches Baugewerbe (ZDB) said, “This is not a turning point! We are still far from the level of three years ago: In 2021 and 2022, more than 90,000 residential units were approved in the first quarter of each year. Such a level is needed to cover an annual demand of well over 300,000 residential units in the long term.”