Building permits: significant decrease in the number of single-family houses | Free press

Living space is limited – yet the authorities note a decline in building permits. Energy prices, high material costs and rising interest rates are causing problems for the industry.

Wiesbaden.

The number of building permits in Germany has fallen in the first five months of this year. In total, authorities approved the construction and redevelopment of 155,347 apartments between January and May, the Federal Statistical Office in Wiesbaden said on Monday. That’s 1.6 percent. less than in the same period last year. In May, minus 2.1 percent was recorded. compared with the same month last year. The Central Union of the German Construction Industry spoke of a warning sign.

From January to May, a total of 135,133 apartments were approved for the construction of new residential buildings, up 1.5 percent. less than in the corresponding period of the previous year. In the case of single-family houses, there was a significant decrease by 17.8% to 34,809. In turn, in the case of two-family houses, the number of approved flats increased by 2.1%. to 14,076. In residential buildings there was an increase of 9.1%. up to 83,308 approved apartments.

Lack of ability to build and trade

The number of building permits is an important indicator of the housing shortage in many cities. However, apartments that have been approved are often not built early as craftsmen and construction companies do not have adequate opportunities due to high demand.

According to the construction industry, high energy prices, soaring material costs, supply bottlenecks and rising interest rates in construction are worrying more and more investors and builders. Fewer orders have been received in the past few months and an unusually large number of construction projects have been canceled, the central association said.

If this trend continues, “we will soon see a deep decline in the construction industry,” warned Felix Pakleppa, association director general. The traffic light coalition must now inspire confidence and confidence. “Private investors need reliable financing and framework conditions for their new construction and renovation projects.” (dpa)

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