Saturday, April 29, 2006

Figures for the German building industry

Still the leader in Europe

6,524 ? a second were spent on building in Germany in 2004, which equates to total building work of some 205 billion ?.
According to the Hauptverband der Deutschen Bauindustrie, the old German states accounted for 170 billion ? of this. Almost one fifth of the total building work, namely 36 billion ?, was carried out in the new German states. In the whole of Germany, 9.5 % of the Gross Domestic Product was spent on building.

As everyone knows, the situation in the German building industry has been very critical for years due to weak economic growth and excessive public debt. Statistics from the Zentralverband des Deutschen Baugewerbes show that investments dropped in all categories last year, namely to 119.2 billion ? (-1.6 %) for housing construction, to 58.6 billion ? (-3.7 %) for industrial building and to 26.8 billion ? (-4.8 %) for public building. Building investment declined by 1.8 % in the old German states and 6.1 % in the new German states. Building permits were granted for a total of 268,123 homes (-9.7 %) in Germany in 2004, including 229,426 in the old states (-9.0 %) and 38,697 in the new states (-13.3 %).

In contrast to the trend for building permits, the volume of homes completed in 2004 increased overall by 1.2 % to 67 billion ?. Here the positive trend of +5.4 % to 41.4 billion ? for finished homes compares with a negative trend of -4.9 % to 25.6 billion ? for non-residential buildings. The growth of new homes is based on the revival of interest in building one- and two-family homes. The 177,213 homes in this sector represent a 7.3 % increase in the volume of finished homes.
The economic situation of the building contractors also remained extremely difficult in 2004. Legal changes contributed to this, as well as the low price levels, rising building material costs and the customers?? paying habits. The number of insolvencies in the building trade dropped by 1.2 % to 8,595 cases, including a 0.9 % drop to 4,214 cases in the main building trade.
Germany with a share of over one sixth of the total continental building market is still the leader in Europe.

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