Building permits fall by almost a third in August

Building permits fall by almost a third in August

The number of building permits for apartments in Germany fell by almost a third in August compared to the previous year. In the first eight months of this year, the number of building permits fell by 28.3 percent, due to rising construction costs and worse financing conditions. This has led to more and more companies canceling residential construction projects. In particular, permits for two-family homes have fallen by over half. This development has an impact on the German economy and the government's goal of creating 400,000 new apartments annually. To support the construction industry, the federal government has decided on measures, including making the rules for depreciation more generous.

From a financial expert's perspective, the information in the article means that the construction industry in Germany is facing significant difficulties. The decline in building permits suggests that investors and companies have become more cautious due to rising construction costs and poorer financing options. This could lead to a reduction in the supply of housing, which in turn further drives up rising rents. Furthermore, it is worrying that more and more companies are canceling residential construction projects. This could lead to a decline in investment in this sector and have a negative impact on economic growth. The measures adopted by the federal government are a first step to support the construction industry, but it remains to be seen whether they will be enough to improve the situation.