Too few apartments are being built in Germany.
(Photo: dpa)
Dusseldorf In residential construction in Germany, the number of cancellations of orders is increasing again, further exacerbating the critical situation in the industry. 14.3 percent of companies reported canceled orders in February, the Munich-based Ifo Institute announced on Monday. In January it was 13.6 percent. A year ago, only 5.9 percent of companies reported cancellations.
Ifo researcher Felix Leiss attributes the negative trend primarily to higher interest rates and increased construction costs. On average, the order books are still well filled, but 23.4 percent of the housing construction companies surveyed are already complaining about a lack of orders. A year ago, the figure was less than half that, at 9.5 percent.
The liquidity and financial situation of companies is also becoming an increasingly important issue. Last month, 6.9 percent of firms complained of financing difficulties, compared with 5.5 percent in January and 3.1 percent in February 2022.
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