WIESBADEN – The number of building permits issued for residential units in Germany has experienced a notable decrease, with a 16.9% year-on-year decline in November 2023, as reported by the Federal Statistical Office (Destatis). This translates to 4,100 fewer permits compared to November 2022, totaling 20,200 approved units for the month.
The trend of declining permits extends beyond November, with a 25.9% reduction in the number of approved residential units from January to November 2023 compared to the same period in 2022. This equates to a decrease of 83,200, culminating in 238,500 approved units. The decrease is observed across various housing types, with new single-family homes experiencing a 38.6% drop, two-family homes a 49.2% decrease, and multi-family homes a 23.8% reduction in building permits during this period.
These figures, including permits for new units in both new and existing buildings, highlight a significant slowdown in the German residential construction sector. This downturn reflects broader market challenges, potentially impacting housing availability and affordability in the face of ongoing economic uncertainties.