Real estate The number of building permits in Germany falls for the third month in a row

Real estate The number of building permits in Germany falls for the third month in a row

Real estate The number of building permits in Germany falls for the third month in a row
The trend in building permits is positive for the year as a whole.  Source: dpa

The number of building permits for apartments in has decreased in August. According to preliminary information from the Federal Statistical Office, the authorities approved the construction or conversion of a total of 30,149 apartments. Seasonally and calendar adjusted, that was 1.8 percent less than in the previous month. However, the balance sheet for the first eight months is positive. From January to August, 5.1 percent more permits were issued than in the same period last year, as the Wiesbaden statisticians announced on Friday.

According to the information, the plus in this period affects almost all types of building in new buildings. There was an increase of 7.2 percent for single-family houses, 32.5 percent for two-family houses and 1.2 percent for multi-family houses. Only for dormitories were fewer building permits issued than in the first eight months of 2020 (minus 22.5 percent).

In August, the number of building permits for apartments in new one- and two-family houses rose by 8.5 percent and 2.6 percent, respectively, compared to the previous month. In contrast, the number of apartments in new apartment buildings fell by 4.4 percent. The number of permits for apartments resulting from construction work on existing buildings decreased by 11.1 percent.

The number of building permits is an important indicator for new buildings in the fight against the housing shortage in many cities. In some cases, however, apartments are approved but not initially built – for example because craftsmen and construction companies have no capacity due to the high demand for real estate.