Orders have collapsed in the German construction industry – sales are also shrinking

Berlin The German construction industry lost orders at the end of 2022 due to rising costs: real order intake in the main construction trades fell by 5.6 percent in November compared to the previous month, as the Federal Statistical Office announced on Wednesday.

In civil engineering in particular, fewer new orders were received, while the decline was not quite as severe in building construction. In October there was still a rise of 7.3 percent, but this followed two falls in a row.

“The bitter truth is: the housing market has collapsed,” commented the general manager of the construction industry association, Tim-Oliver Müller. The federal government’s goal of building 400,000 apartments per year was achieved in 2022 and is unlikely to be achieved in 2023 or 2024.

“High material prices, rising interest rates and a lack of new construction subsidies with cost-intensive legal regulations are the real reasons why housing associations are no longer investing,” said Müller. Government funding is necessary.