Residential construction: Downward trend in number of permits continues
Between January and March, the number of building permits for new living space has declined compared to the same period of last year by 2.8 % to a total of 75,600. According to the Federal Statistical Office (Destatis), the drop was particularly steep for new multi-family homes (- 4.4 %) and dormitories (-29.8 %). The only building type to show a plus was the single family home (+2.3 %). The total number of permits had already dipped slightly for all of 2018. In light of these figures, the German Association of Private Housing and Real Estate Companies (BFW) criticizes current plans by the SPD to further tighten rent price restrictions. Rent control ruins all planning reliability of its member companies, states BFW President Andreas Ibel. The President of the German Property Federation (ZIA) calls the figures “sobering” and reiterates his demand for the introduction of a digital construction file and a “model high-rise guideline”, as well as harmonization of state building laws to promote serial construction.
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