Germany Construction Industry Databook- Market Size & Forecasts Across 40+ Construction Segments from 2018-2027

DUBLIN, March 12, 2024 /PRNewswire/ -- The "Germany Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units)" report has been added to  ResearchAndMarkets.com's offering.

The construction industry in Germany is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.4% during 2023-2027. The construction output in the country is expected to reach EUR 299.08 billion by 2027.

Construction-related businesses are collapsing at a rapid rate in the German market. Rising interest rates, surge in construction material, slowing demand, and shortage of skilled workers are among the primary reasons resulting in the downfall of many developers over the last few quarters.

The housing market is one of the worst-hit sectors in the German construction industry. Several developers have cancelled the projects with the number hitting a new high in August 2023. Based on the data revealed by the Munich-based Ifo economic institute, one in five companies canceled their projects in August. To support the growth recovery of the construction market, government intervention will become crucial from the short to medium-term perspective in Germany.

Rising interest rates and construction material prices led to the downfall of developers in Germany

Builders, in Germany, have been facing the perfect storm in rising interest rates, expensive construction materials, slowing demand, and a shortage of skilled workers. All of these factors have resulted in severe financing problems across the construction market. The financing issues have subsequently resulted in the downfall of several developers including Centrum Group and Development Partner and Project Immobilien Gruppe. The publisher expects the trend to further accelerate in Q1 2024, meaning further troubles for the German construction industry.

The demand has slowed significantly in the German market. This is evident from the significant decline in new permits, which fell 31.5% in July 2023, compared to the same period last year. The authorities have granted permits for only 21,000 apartments in July, which is 9,600 fewer than the year before. In the first seven months of 2023, permits have declined 28% in the German market. Annually, Germany aims to construct 400,000 apartments. However, the country is struggling to meet the goal due to the current macroeconomic environment. For years, the period of low-interest rates has fueled the growth of the construction market. But the sharp rise in interest rates has put an end to it.

The German government is working on a relief package to revive the struggling construction industry

With the construction market facing severe headwinds due to rising interest rates and material prices, which has led to the downfall of several businesses in the sector, the government is now working on a relief package aimed at reviving the industry growth in Germany.

The construction sector is in dire need of liquidity in Germany. The market does not need subsidies, but rather incentives for investment to support the growth recovery of the residential construction market in Germany.

The surge in construction costs is also affecting the renovation rate in the German market

Revamping buildings through deep renovation, which drastically cuts down energy usage for heating and cooling, is deemed essential in achieving climate goals and alleviating pressure on energy infrastructures. The European Union intends to tackle this challenge by increasing renovation rates to 2% of the total housing stock.

The effects of rising construction costs are also reflected in renovation works. Orders for energy modernization measures have decreased significantly in the German construction industry. The publisher expects the trend to continue over the next few quarters, as interest rates are projected to remain higher for longer globally.

This report provides in depth analysis of construction costs by type of cost. It also provides data points by different material costs involved and different labour cost. This report further provides information by type of construction and Cost by type of worker.

• Top Ten Cities Construction Value Data: Construction market size by key sectors at city level.
• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers, and risks in construction industry.
• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

Market Data and Insights:

This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 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: 

• 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: 

• 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: 

• 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: 

• 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: 

• 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: 

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Germany Institutional Green Building Construction Coverage: 

• Healthcare green building construction
• Educational green building construction

Germany Infrastructure Construction Sectors: 

• 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 (new construction, re-development & maintenance)

Germany Green Infrastructure Construction: 

Germany Construction Cost Structure Analysis: 

• 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). In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends, and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Germany.

For more information about this report visit https://www.researchandmarkets.com/r/k4824s

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