With 17,600 apartments under construction and conversion in June, activity in Germany’s residential construction was 19% lower than in June 2023, according to industry association Hauptverband der Deutschen Bauindustrie.
This confirms a downward trend seen all through the first half year, with a year-on-year decline of 21%. The managing director of Bauindustrie, Oliver Müller, says there is no hope of a recovery in sight.
“The first half of the year was another major disappointment in terms of housing. We are heading for the weakest level of approvals since 2010,” he states.
For builders and benders, this means that the struggle for orders remains tough, and could become tougher. Benders are operating unprofitably because the competition is even worse for their customers, the construction companies.
“We often have five to ten benders competing for an order; but one level up, it is even more builders wooing to get a project,” Kallanish hears from a bender’s manager.
Hence, construction firms pass the pressure along to partners and try to compensate some of their concessions in award speculation by pushing down the price for rebar services.
“Many just need a deal to keep operating. We are between the devil and the deep blue sea,” the manager states.
Christian Koehl Germany
