Germany as well as Europe as a whole are set to see a massive decline in residential construction in the coming years due to rising costs, the think tank ifo institute said Tuesday, citing the latest projections by the Euroconstruct forecasting network.
Only about 1.5 million housing units are forecast to be built in Europe by 2026, which is a 13 percent decline on 2023, the ifo institute said. This translates to an expected decline of 35 percent in Germany.
"Due in particular to the sharp rise in construction and financing costs, it's often no longer possible to build new homes in Germany," ifo construction expert Ludwig Dorffmeister said.
The lack of policy decisions is also impacting residential construction, the expert said.
by Jyotsna V
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