Germany Construction Industry Report 2025: Output to Decline by 3% This Year, Owing to Rising Construction Material Costs and Falling Building Permits Amid Poor Economic Conditions - Forecast to 2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Germany Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets.com's offering.

The analyst expects the construction industry in Germany to decline in real terms by 3% in 2025, owing to rising construction material costs and falling building permits amid poor economic conditions.

According to Destatis, the total number of building permits approved fell marginally by 0.1% year-on-year (YoY) in the first six months of 2025, with that of non-residential buildings falling by 8.1% during the same period. Similarly, the construction production index declined by 3.3% YoY in the first six months of 2025, following an overall annual fall of 3.4% in 2024, according to Eurostat. In another setback to the industry's output, the announcement of US tariffs on European imports coupled with structural problems such as a shrinking workforce, and competition from Chinese exports are adding further pressure on the construction industry.

The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by investments in manufacturing, road construction and renewable energy projects. In March 2025, the German Parliament approved the government's EUR500 billion ($544.8 billion) debt package that will be funneled into infrastructure climate spending, which will be financed through loans for 12 years. Of the total, EUR300 billion ($327 billion) is for various infrastructure projects, EUR100 billion ($109 billion) is for federal states and another EUR100 billion ($109 billion) is for climate-related projects.

The government's focus on investing EUR40 billion ($43.6 billion) to modernize its railway infrastructure by 2027, along with the implementation of several projects like the Stuttgart 21 rail hub redevelopment project and Munich's Second S-Bahn Core Line project will support rail sector's growth over the coming years.

Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Germany, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/mtnbdm

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