Germany housing permits rise 15.1 percent in first half of 2026

Germany saw a significant increase in building permits during the first half of 2026. According to the Federal Statistical Office, 126,300 residential and non-residential units were approved, representing a 15.1 percent increase compared to the first half of 2025.

Despite this rise, experts warn that the housing market remains under pressure. The time between permit approval and completion averages approximately 26 months, meaning new supply will not materialize immediately. Furthermore, the ifo Institute reported a decline in the business climate for the construction industry in July 2026, with 43.7 percent of companies citing a lack of orders.

Dirk Wohltorf, president of the Immobilienverband Deutschland (IVD), described the rising numbers as a positive sign that does not yet signal an end to the crisis. He noted that the proportion of approved units actually being built is decreasing and warned of a potential new low in completions this year. The IVD is calling for faster political action, including accelerating reforms to new construction subsidies and reducing financial burdens such as real estate transfer taxes to encourage developers and homeowners.