Germany Construction Industry Report 2025: Output to Fall by 1.8% this Year, Marking 5th consecutive Year of Decline Due to Inflation, Costs, Weakened Demand - Forecast to 2029 - ResearchAndMarkets.com

The "Germany Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Germany to fall in real terms by 1.8% in 2025, marking its fifth consecutive year of decline, owing to the headwinds caused by elevated inflation rate, high construction material costs, and weak demand especially from industrial and residential construction sectors.

According to Destatis, the construction cost index for residential buildings rose by 1.6% year-on-year (YoY) in the first nine months of 2024, increasing from 116.9 in January-September 2023 to 118.7 in January-September 2024. Furthermore, rapidly falling building permits are also contributing to the decline of the German construction sector.

The total number of building permits issued in the country fell by 11.5% YoY in 2024, with residential building permits and non-residential building permits falling by 13.4% YoY and 5.8% YoY, respectively, during the same period. Moreover, rising political instability following the collapse of Chancellor Olaf Scholz's government in December 2024 is exacerbating challenges for the construction industry. The new government, elected in February 2025, now faces multiple hurdles, including reducing high energy costs.

The German construction industry is expected to record an average annual growth rate of 3.1% between 2026 to 2029, supported by investments majorly in transport, energy, and industrial projects. In mid-December 2024, the government committed EUR40 billion ($43.6 billion) to modernize the country's rail infrastructure by 2027, including major projects such as the Stuttgart 21 rail hub redevelopment and Munich's Second S-Bahn Core Line.

Recently, in February 2025, the European Commission (EC) approved a grant of EUR920 million ($1 Billion) to support the construction of a semiconductor plant in Dresden, Germany. The project is scheduled for completion by 2031.

Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Germany, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/cc9o6y

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