Dublin, June 27, 2024 (GLOBE NEWSWIRE) -- The "Germany Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Germany is expected to grow by 2.6% to reach EUR 241.35 billion in 2024. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.2% during 2024-2028. The construction output in Germany is expected to reach EUR 263.42 billion by 2028.
The outlook for the German construction market remains bleak amid elevated interest rate levels. Building permits for apartments declined by 18.3% in February 2024, compared to the year before. The data, according to the German government, underscores the continued downturn in demand in the construction and real estate market. The sluggishness in the sector is also projected to result in significant job cuts in the construction industry in 2024.
The government, in 2024, is focusing on the development of green infrastructure. It has allocated €57 billion to fighting climate change. A significant chunk of the €57 billion allocation will be directed towards the German construction market. The Ministry revealed that €18.9 billion will be provided in subsidies for new buildings and building renovations in 2024. However, in the short term, the sector is expected to remain under pressure in the German market.
Homebuilding permits continue to decline significantly in the German market in 2024
In Germany, building permits for apartments declined by 18.3% in February 2024, compared to the year before. The data, according to the German government, underscores the continued downturn in demand in the construction and real estate market.
The government data shows that some 18,200 permits were issued, which is 4,100 less compared to the 2023 period. The number of building permits, notably, is a good indicator of the health of the construction industry. The German Property Federation has called on the states to cut property sales tax to stem the decline.
For years, real estate has been a major growth driver for the German economy. Driven by low-interest rates, billions of dollars were invested into the property sector in Germany. However, the sharp increase in interest rates over the last 12 months has put an end to the flourishing construction industry. With rates expected to remain at elevated levels in H1 2024, the short-term outlook for the market remains bleak in Germany.
Significant job cuts are expected in the German construction industry in the short term
The German construction sector is facing tough times ahead with the looming prospect of job cuts. According to Tim-Oliver Muller, the head of the construction industry association HDB, around 10,000 jobs are expected to be lost in 2024.
This downturn is largely due to a sluggish economy in the construction sector, especially in residential buildings, which saw a significant drop in sales last year and is predicted to decline further in 2024. As a result, many firms are bracing for financial difficulties, with over half of surveyed firms expecting their performance to worsen this year. This has led some businesses to consider reducing their workforce as a way to cope with the challenges.
The Central Association of the German Construction Industry (ZDB), which represents medium-sized construction companies, had also voiced concerns about the future in December 2023. They predicted a substantial loss of around 30,000 jobs. Although there is still demand for skilled workers in growing sectors like expansion projects and civil engineering, the residential construction sector is not operating at full capacity.
Germany has earmarked €57 billion for green infrastructure in 2024
In 2023, the German government allocated €57 billion to fighting climate change, aiming to achieve greenhouse gas neutrality by 2045. This funding will be directed to the Climate and Transformation Fund, which was established in 2010 with only a small contribution of a few hundred million euros. The Finance Ministry of Germany stated that this approved amount for 2024 marks a significant increase of nearly €22 billion, or 60.2%, compared to the target set for 2023.
A significant chunk of the €57 billion allocation will be directed towards the German construction market. The Ministry revealed that €18.9 billion will be provided in subsidies for new buildings and building renovations in 2024. In the transportation sector, the fund will allocate around €12.5 billion to improve Germany's rail network from 2024 to 2027. Furthermore, Germany plans to invest €4.7 billion in building up the country's infrastructure for electric vehicles, specifically focusing on charging stations for e-mobility.
This market intelligence report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in Germany, this databook offering primarily provides data-centric analysis with charts and tables.
Key Features
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry in Germany.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities in Germany by construction value.
- Construction Cost Structure Analysis: Provides outlook of different construction cost like material, labour, equipment, and others costs by construction value. At granular level, this module provides in detail material cost analysis by type of materials and labour cost by type of work by construction value.
Market Data and Insights:
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2019 - 2028 in Germany.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
Germany Economic Indicators
Germany Top Cities Construction Data
Germany Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
Germany Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
Germany Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Other commercial building construction
- Construction stage (new construction, re-development & maintenance)
Germany Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
Germany Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
- Manufacturing Plants building construction
- Chemical & Pharmaceutical building construction
- Metal & Material Processing building construction
- Construction stage (new construction, re-development & maintenance)
Germany Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Other building construction
- Construction stage (new construction, re-development & maintenance)
Germany Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
Germany Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage
Germany Green Infrastructure Construction: 10- year market size & forecast in value terms
Germany Construction Cost Structure Analysis: 10- year market size & forecast in value terms
- Cost Analysis by Type (Material, Labour, Equipment, Others)
- By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
- By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
- By Type of Construction (New, Re-Development)
- By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
- Type of Labour (Skilled Vs Unskilled)
For more information about this report visit https://www.researchandmarkets.com/r/q0vtan
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