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Building permits were up in Germany in the first quarter, according to official figures published on Monday, in what marked a ray of hope for the country struggling with a sustained housing crisis and soaring rents.<\/p>\n
In March, permits were granted for 21,800 flats in both new and existing buildings, up 11.5% on the same month last year, the Federal Statistical Office said in a statement.<\/p>\n
A total of 63,500 units in new and existing buildings were authorized between January and March, 14.6% more than in the first quarter last year.<\/p>\n
The number of permits granted rose particularly sharply for new semi-detached homes, which were up 23.2%, and flats in new multi-unit residential buildings, up 14.9%.<\/p>\n
Building permits are a key indicator for the housing construction sector, which has been struggling due to rising interest rates and construction costs.<\/p>\n
Affordable housing is in short supply in Germany, particularly in urban areas. The government of Chancellor Friedrich Merz has vowed to boost construction by speeding up the authorization process, and has reactivated support programmes for energy-efficient building.<\/p>\n
While the latest figures were a sign of encouragement for the sector, rising costs and rates due to the Iran war are threatening to hamper the recovery.<\/p>\n
\u201cThe number of new building permits issued in March shows that the German construction industry maintained robust momentum during the first month of the war in Iran,” said Sebastian Dullien from the Macroeconomic Policy Institute affiliated with the Hans B\u00f6ckler Foundation.<\/p>\n<\/p><\/div>\n