Residential recovery continues in Germany, as apartment permits jump 60%

An urban construction site in Kiel, Germany (Image: snapshotfreddy via AdobeStock - stock.adobe.com)

Germany’s property sector has been in the grip of a serious slump ever since 2022 but the increase in apartment permits to 24,400 in September was a sign that the market could finally be turning a corner.

Nonetheless, the number of permits issued in September 2025 compares to September 2024, when they were particularly weak.

From January to September 2025, the number of permits was up 11.7% year on year, to around 175,600.

The number of permits for newly constructed buildings increased by 14.2%, while the number for conversions of existing residential and non-residential buildings rose by 3.9%.

Tim-Oliver Müller, managing director of the German construction industry federation Bauindustrie, called for a “massive expansion of financial support” to further boost housing construction, along with improved interest rates.

He also recommended reducing building requirements that the German construction industry argues are increasing costs. That includes reforms through the Building Type E Act aimed at simplifying German residential construction regulations, which federal minister for construction Verena Hubertz will present this week.

“We need legal certainty and flexibility in the drafting of construction contracts so that construction can be simpler and therefore more cost-effective again,” Müller said.