The recent upward trend in building permits in Germany continued in April. According to the Federal Statistical Office, permits were issued for 1,700 more housing units than in the same month last year (an increase of 9.2 percent), bringing the total to 20,200. The construction industry welcomed the development, though it noted that actual demand remains significantly higher.
The number of building permits is a key leading indicator of future construction activity—and is therefore also significant given the housing shortage in many metropolitan areas. For the full year 2025, an increase was recorded for the first time since 2021, with a total of 238,500 approved housing units—an 11 percent rise compared to the previous year.
This trend continued into the current year during the four-month period from January to April. Compared to the same period last year, there was a 13.2 percent increase, with 83,700 housing units approved.
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Most new housing units are set to be built in multi-family buildings: during the four-month period ending in April, the number of permits in this category rose by 14.7 percent to 44,300. For single-family homes, the increase was 11.7 percent, with permits issued for 15,900 new houses. In addition, permits were granted for 4,900 new two-family homes—an increase of 22.9 percent. These figures were supplemented by units in residential homes and housing created through the conversion of existing buildings.
However, compared to the preceding months of 2026, the upward trend in building permits slowed in April: the year-on-year increase had stood at 24.1 percent in February and 11.5 percent in March. Experts had warned that the conflict involving Iran was impacting residential construction by driving up interest rates and material costs.
On Thursday, the German Construction Industry Federation (Hauptverband der Deutschen Bauindustrie) emphasized that building permits must translate into actual projects. “Yet this is precisely where things have been faltering in recent months, as evidenced by the completion figures for 2025 and the low volume of incoming orders for the construction sector,” explained Chief Executive Tim-Oliver Müller. He called for “clear, investment-friendly, and reliable framework conditions to ensure that construction actually takes place.”
Müller urged that a “clear package of measures” must emerge from the upcoming investors’ conference hosted by Federal Housing Minister Verena Hubertz (SPD). The conference takes place on Friday in Frankfurt am Main; according to the ministry, its aim is to focus on “practical concerns” alongside investors and decision-makers, and to explore “what kind of impetus can mobilize capital and investment for the entire spectrum of residential construction.”
Felix Pakleppa, Chief Executive of the Central Association of the German Construction Industry (ZDB), welcomed the rise in permit figures in April as “good news.” However, he added that the “housing market crisis” was “far from resolved.” “New construction is stalling, particularly in major cities where housing is most urgently needed,” he explained. “To meet the annual demand of 320,000 housing units, at least 26,700 permits must be issued each month.”
Pakleppa also criticized the fact that high financing costs are unsettling an increasing number of investors and prospective builders—”meaning building permits are expiring instead of resulting in completed construction projects.” In 2025, 35,700 building permits lapsed. “Not this many projects have failed since 2002,” he stated.
The Federal Association of Independent Real Estate and Housing Companies (BFW) also called for further measures to trigger a “genuine turnaround” in residential construction. BFW President Dirk Salewski demanded “incentives for investment.” The investors’ conference in Frankfurt, attended by Federal Housing Minister Hubertz and Federal Finance Minister Lars Klingbeil (SPD), offers an opportunity to make progress in this area.
Author: AFP translated by Blackout News
Sources: AFP Press Portal