Permit recovery gathers pace but construction gap persists

Germany's building permit figures have delivered their most encouraging reading in years, with approvals rising 24.1% year-on-year in February 2026 to 22,200 dwellings. Politicians have been quick to claim credit. The industry's response has been pointedly more cautious, and a new set of macroeconomic headwinds is already casting a shadow over a recovery that has barely found its footing.

The Destatis data showed that approvals for new-build apartments rose by 30.6% in February, with multi-family homes up 18% to 21,900 units. Taking January and February together, approvals for new construction rose 17.6% on the same period in 2025. For the full year 2025, permits were up 10.8% to 238,500 dwellings, the first annual increase since 2021 and a meaningful recovery from the 15-year low recorded in 2024.