Germany Construction Industry Report 2024: Output Estimated to Shrink by 4.4% in Real-terms in 2024 and a Further 0.5% in 2025, Marking 5 Years of Continuous Decline #NewsGerman

Dublin, Feb. 05, 2025 (GLOBE NEWSWIRE) — The “Germany Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)” report has been added to ResearchAndMarkets.com’s offering.

The German construction industry is expected to shrink by 4.4% in real terms in 2024, marking its fourth consecutive year of decline.

Across the last four years the industry has been effect by a series of headwinds including the impact of high inflation, rising material costs, and elevated interest rate hikes, alongside a corresponding lack of demand, especially in manufacturing, contributing to a fall in building construction activities. Despite some of these headwinds, mainly cost-push inflation subsiding, stabilising construction material prices and decreasing uncertainty in supply chains. Demand in the market is yet to return to its pre-pandemic levels.

According to Eurostat, the average construction production index fell by 4% year-on-year (YoY) in the first nine months of 2024, with that for construction of buildings falling by 8.2% YoY, and that for specialized construction activities falling by 4.1% YoY, over the same period. Subsequently, the construction turnover for building construction fell by 9.7% YoY in the first nine months of 2024, according to the Federal Statistical Office (Destatis).

The analyst expects the negative outlook to continue in the German construction industry in 2025, with the country registering a marginal fall of 0.5%, in real terms. The industry is likely to be affected by the ongoing political disturbances in the country, considering the upcoming election. This is anticipated to continue to weigh on investor confidence, and can be reflected so far in 2024, through a fall in building permits.

According to the Destatis, the total number of building permits issued in the country fell by 14.1% YoY in the first nine months of 2024. Broken down by sector there was 16.7% YoY fall in residential building permits, while non-residential perimts registered a 5.7% YoY

Scope

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Germany, featuring details of key growth drivers.

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

• Listings of major projects, in addition to details of leading contractors and consultants

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