German housing construction to decrease by 35% by 2026 amid rising material costs

Posted on February 26, 2024   |  

German housing construction is projected to decline by more than a third due to ongoing tight financing conditions and rising building material costs.

Expected housing completions in Germany are set to decrease by 35% by 2026 compared to levels seen in 2023.

Sharp increases in building and financing expenses are hindering new residential construction across Germany.

Construction across Europe is forecasted to drop by 13% in 2026 compared to figures from 2023, resulting in approximately 1.5 million fewer units.

Sweden, France, and Denmark are also expected to see declines in construction, with decreases of 47%, 22%, and 19% respectively.

However, Ireland and the U.K. show promise, with housing starts expected to increase by 14% and 12% respectively.