Construction Sector Increases Contracts and Revenues

Just as real estate prices, the construction industry in Germany is growing constantly. This is shown by the newest study of the German Realtors Association (IVD).

(Source:CC License, stocksnap.io)

The annual evaluation of the IVD shows that property prices in Germany increased again by more than six percent. In 2016, too, the price increase for apartments with an average residential value was at 6.03 percent compared to the previous year, while 2015 showed an increase of 5 percent. In recent years, large-scale cities in particular have seen price growth at a very high level. Most of all, in the smaller and medium-sized cities, there is a stronger increase, since these have very good price dynamics.

Metropolises like Berlin have already immensely grown in prices, even though Berlin real estate is still much cheaper than other capitals of the EU. Of all German locations, Leipzig shows the sharpest price increase. There, buyers have to pay 23.53 percent more than in the previous year. This is mainly due to the sustaining housing demand. Still 400,000 new apartments are needed each year to meet current demands. The construction sector benefits from this. In June 2017, contract receipts were at a value of roughly EUR 6.8 billion, 1.1 percent higher than in June 2016. These are the highest figures since 1996. Compared to the previous year, the contract receipts of the first two quarters of 2017 increased by 5.5 percent.

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