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German Apartment Approvals Drop in February, Highlighting Housing Challenges

New data shows a 2.3% year-on-year decline in apartment permits, with overall approvals still lagging behind national housing targets.

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Overview

  • February 2025 saw a 2.3% year-on-year drop in apartment approvals, totaling 17,900 units, according to the Statistisches Bundesamt.
  • Of these, 14,200 units are planned for new buildings, while the rest will be developed in existing structures.
  • Despite the February decline, cumulative approvals for 2025 reached 35,900 units by the end of February, up 2.1% from the same period last year.
  • Approvals for single-family homes increased by 12.4% year-on-year to 6,800 units, though this trend remains contentious in urban areas due to land and energy concerns.
  • Germany's housing sector continues to face significant challenges, with approvals falling short of the federal government's 400,000-unit annual target.