DUBLIN--(BUSINESS WIRE)--The "Germany Construction Industry Databook Series - Market Size & Forecast (2016 - 2025) by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction - Q1 2021 Update" report has been added to ResearchAndMarkets.com's offering.
The German economy has been severely impacted due to the coronavirus outbreak and subsequent imposition of containment measures in the country. While several sectors in Germany were forced to shut down their operations as a result of the lockdown measures, the construction industry was not. The German government announced that residential, infrastructure and utility construction were exempted from the lockdown measures. Even during the crisis, companies were allowed to conduct their construction activities in the country.
The construction sector recorded a fall in activity for the first time in more than a decade. This is because several construction companies in the German economy are scaling back their building activities, as a result of the coronavirus pandemic. In 2021, the demand is expected to remain sluggish.
Demand for the residential construction sector is still strong in the German market. The coronavirus crisis had an astonishing effect on the real estate market in Germany. Because the mortgage interest rates are at an all-time low, demand for residential property is stronger than ever before.
In September 2020, the construction of approximately 30,000 dwellings was permitted in the country. This represents an increase of 0.9% as compared to September 2019. Whereas, from January to September 2020, there has been a 4.2% increase in the number of permits during the same period in 2019. All of this represents the growing demand for housing property in the country.
The commercial construction sector is expected to be the most affected in Germany, especially retail, office, and entertainment is projected to record negative growth in 2020. With the coronavirus induced lockdown, and work from home measures to contain the virus spread, commercial construction activities have been severely impacted in Germany. With a massive slump in sales and profits, the demand for building work is expected to decline in 2020.
Moreover, the biggest losses are expected in the commercial construction sector, with as much as a 6-8% decline in real terms in 2020.
In their quest to make the entire network greener, efficient and reliable, the German government is doubling their annual investment in the rail infrastructure. This will support the growth of the infrastructure construction section in Germany. Moreover, the worlds' longest immersed rail and road tunnel between Germany and Denmark also got a green light. The construction of the Fehmarn belt is worth US$7.8 billion. With the construction expected to start in Mid-2022, the forecast for infrastructure construction remains positive.
In Northern Germany, ten new construction projects for logistics and industrial space have been launched. These infrastructure construction projects are expected to support the construction industry going forward.
According to this Q4 2020 Global Construction Survey, construction industry in Germany is expected to grow by 14.9% to reach US$ 497861.1 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Germany remains intact. The construction industry in Germany is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 4.0% during 2021-2025. The construction output in the country is expected to reach US$ 581500.7 million by 2025.
This report provides data and trend analyses on construction industry in Germany, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
For more information about this report visit https://www.researchandmarkets.com/r/91fqia
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