German Construction Sector Sees Signs of Stabilization After Prolonged Downturn

The construction industry predicts modest recovery in 2025, with hopes for policy changes and easing interest rates to support growth.

The German construction industry reports a stabilization of activity at low levels, with companies no longer expecting worsening conditions in the near term.
Housing construction remains weak, with 2024 completions projected at 250,000-255,000 units, down from 294,000 in 2023, and further declines expected in 2025.
The sector is optimistic about potential interest rate reductions and calls for consistent government support for new housing projects and infrastructure investment.
Infrastructure projects, including energy and mobility upgrades, are driving growth in the civil engineering sector, contrasting with continued struggles in residential and commercial construction.
Industry leaders urge the next German government to streamline building regulations, stabilize funding for new construction, and address workforce challenges linked to demographics and labor shortages.