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The majority of Germany’s economic outlook is driven by heavy demand in the construction sector and high employment. Moreover, government initiatives to revamp the construction sector by allowing more construction permits and fiscal incentives to citizens are helping the construction sector.
Construction of residential facilities has always been the driving factor for the growth of the construction sector in the country. The residential sector in the country is still in much demand due to the high immigration of refugees, strong urbanization, and an increasing number of immigration of professionals.
Additionally, in September 2020, the government permitted the construction of 29,700 dwellings in the country. According to the Federal Statistical Office (Destatis), the number of permits for new buildings and existing buildings grew at 4.2% between January and September 2020, compared to last year during the same period.
After the slump in the economy during the second quarter of the year - primarily due to the Covid-19 pandemic, the economy showed recovery between July and September. According to Constrack360, economic recovery added with the government’s decision to keep operating the construction sites despite lockdown restriction, is likely to support the construction sector in the next quarter.
To know more and gain a deeper understanding of the German construction industry, click here.
