The Federal Statistical Office reports an increase in building permits for dwellings in Germany for May 2026. In total, 21,000 dwellings were approved this month, representing an increase of 4,200 permits compared to May 2025. However, this development is accompanied by a precise assessment from the BFW Bundesverband Freier Immobilien- und Wohnungsunternehmen, which goes beyond mere figures.
A breakdown of the figures shows that 17,800 dwellings were approved in new residential building construction, an increase of 4,100 units compared to the same month last year. In addition, 3,200 approved dwellings resulted from the conversion of existing structures, a slight increase of 100 units compared to May 2025. This statistical survey forms the basis for analysing the current market situation.
Challenges beyond the permit stage
BFW President Dirk Salewski emphasised that an increase on paper does not necessarily translate into increased construction activity in practice. He pointed out that the realisation of many projects continues to be complicated by a range of factors that extend beyond the issuing of a permit. These include persistently high material and financing costs, which can lead to reduced margins or the complete unprofitability of construction projects. Another issue is the frequent changes and cancellations of funding programmes, which significantly impair planning certainty for investors and project developers.
A recurring theme is also the lack of simplification of bureaucratic processes. Despite repeated calls for a reduction in inhibiting bureaucracy, no significant progress has yet been made here. These aspects collectively create an environment that complicates the actual implementation of approved projects.
Outlook and demand for structural changes
Salewski expressed scepticism regarding an immediate significant increase in housing completions in the current year, although he assessed the risen building permit figures as a positive signal. He stressed that this increase came from a very low level and therefore did not represent a comprehensive turnaround for the actual demand in the housing market. The housing crisis, despite this positive snapshot, has not ended.
The BFW President highlighted the importance of practical and affordable standards in residential construction to unlock its full potential for alleviating the housing market. He described building type E as an opportunity to reshape the framework conditions and called for its swift legal implementation to establish it as a new standard. This is intended to contribute significantly to tackling the housing shortage.
