The Federal Statistical Office has just published that the number of newly created apartments in 2025 reached 206,600 units, the lowest level since 2012. This was the second year in a row that residential construction declined. The declines in completions are spread across all usage segments: for detached and semi-detached houses it is -23.3% compared to the previous year, for apartments in apartment buildings -18.9%, for apartments in non-residential buildings -31.8% and for dormitories -15.9%. However, the negative trend in completions is offset by positive developments in building permits, the number of which rose by 10.6% year-on-year to 238,100 residential units in 2025, thus exceeding the number of completed dwellings. In the first quarter of 2026, the number of building permits rose again by 14.6% compared to the same quarter a year earlier, so that up to 270,000 building permits can be expected for the year as a whole if the trend continues.
The construction backlog, i.e. apartments that have already been approved but not yet completed, amounted to 760,700 apartments at the end of 2025. Of these, 307,200 apartments were already under construction. According to Aengevelt’s calculations, 90% of the approved apartments will also be completed, which represents a decrease in the realization rate compared to previous years. At the same time, the processing period from approval to completion has been extended to 27 months; in 2020, it was still 20 months. An increase in the number of permits is therefore only reflected in the completion performance with a time lag of two to three years.
Due to the current construction backlog and the increased number of permits, Aengevelt’s further calculations suggest that the number of building completions will increase again to 250,000 to 280,000 residential units in 2026. In 2027 and 2028, further increases in new construction output are expected, so that the mark of 300,000 residential units could even be exceeded.
Dr. Wulff Aengevelt, Managing Partner of Aengevelt Immobilien: “The official completion figures for 2025 do not reflect anything good. However, the pleasing development in building permits suggests that things will pick up again in the coming quarters. Nevertheless, the negative record values for construction time and the rate of unrealized projects also show that the framework conditions for the construction of new apartments remain very difficult. This is also due to the ideologically influenced framework conditions as well as the inadequate designation of needs-based building land and the cost-driving regulatory requirements.”
