Germany Construction Industry Report 2025: Output Declined by 3% Owing to Falling Building Permits and Rising Construction Material Costs - 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 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Germany declined in real terms by 3% in 2025, owing to falling building permits and rising construction material costs.

According to Destatis, the total number of non-residential building permits approved fell by 3.6% year-on-year (YoY) in the first nine months of 2025, following an overall annual fall of 5.8% in 2024. Similarly, the construction production index declined by 2.7% YoY in the first nine months of 2025, following an overall annual fall of 3.4% in 2024, according to the Eurostat.

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, and road construction projects. Earlier, in March 2025, the German Parliament approved a EUR500 billion ($544.8 billion) debt package to fund infrastructure and climate initiatives through 12-year loans.

The plan allocates EUR300 billion ($327 billion) for infrastructure projects, EUR100 billion ($109 billion) for federal states, and another EUR100 billion ($109 billion) for climate-related projects. Germany's growth outlook is further strengthened by ongoing investments in renewable energy, in line with the government's target to generate 80% of electricity from renewables by 2030 and achieve carbon neutrality by 2045.

Report 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/4zq8ck

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