As the specter of economic downturn looms over the German and European construction industry, forecasts paint a grim picture for the housing sector. Projections from the Euroconstruct research group, affiliated with the esteemed Ifo Institute, suggest a significant downturn in housing completions by 2026, with Germany expected to experience a staggering 35% decrease compared to 2023.
Across Europe, the situation isn't much brighter, with a projected 13% decline in housing completions. This downturn is attributed largely to the exponential rise in construction and financing costs, rendering new residential construction increasingly unattainable.