Germany saw an increase of 20% in 2016 for new residential building permits. More than 380,000 permits for residential buildings were issued last year and around 285,000 new homes were built showing a drastic increase from the previous year. Housing Minister Barbara Hendricks, said that this increase will further support the economic growth this year. At Reuters interview, Hendricks said, “We have succeeded in initiating a turnaround in housing construction within a very short time.” Furthermore, she stated that this has been a record number since the year 2000.
Forecasts predict that the strong growth in demand for new residential building will continue to grow in Germany. Experts in the property business say that around 350,000 new homes are needed every year until 2020 in order to manage the drastic shortage of affordable housing in Germany. It is predicted that property sales will increase by 5% this year, achieving a new record since 1995.