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Market situation in Germany
Development of the construction industry in Germany
With more than 1 million employees the construction sector is one of the biggest employers in Germany. About 10 percent of the gross domestic product is deployed in construction every year. Thereby, the construction industry contributes considerably to the economic growth in Germany. Within Europe, Germany currently has the biggest construction volume. The growth rate also is on a constant high level. The German construction sector experienced a long phase of recession after the construction boom due to the German reunification. Overcapacities were reduced and the financial crisis had a negative effect on the construction sector. As recently as 2005 a trend reversal started which continues until today. Currently, a lot of construction projects in Germany are being executed.
Flourishing construction of residences and infrastructure
The most important driver of growth is the construction of residences. Due to the high immigration of refugees, the immigration of professionals as well as the strong urbanisation, the need for residences is still high. In 2016, 375.000 construction approvals were granted. The last time such a high amount of approvals was granted was in 1999. By that time, the Federal Government supports the construction of residences in Germany with a mixture of incentives and the reduction of bureaucracy. These were summarized in a 10-point scheme by the Minister of Construction Barbara Hendricks. For example, properties of the federal state are sold for a lower price. Another driver of growth is the expansion of the infrastructure construction projects. The German Federal Transport Infrastructure Plan 2030 of the Federal Minister of Transport Alexander Dobrindt has a total volume of about 265 billion Euro and sets the transport political course for the next years. Main aims of the plan are the retention of the existing networks and the removal of choke points on important traffic routes.