The Federal Statistical Office has published the building permit figures for June 2026 as well as the balance for the first half of 2026. Although an increase in approved residential units has been recorded, the German Real Estate Association (IVD) continues to assess the situation as critical and sees an ongoing need for political measures. The figures indicate a slight recovery, which, however, according to the IVD, is insufficient to address the structural problems of the housing market.
In June 2026, a total of 21,600 dwellings were approved for construction. This represents an increase of 13.8 per cent compared to the same month last year. For the entire first half of 2026, the total stands at 126,300 approved residential units. This figure exceeds the result of the first half of 2025 by 15.1 per cent. This development marks a positive change compared to the recent past, but is classified by the German Real Estate Association as insufficient for a trend reversal.
Assessment by the German Real Estate Association
Dirk Wohltorf, the president of the IVD, commented on the available data, comparing the slightly increasing permit numbers to a higher water level after a prolonged dry spell. He stressed that while this development was gratifying, it by no means signalled an all-clear. Housing construction, he said, remained in a phase of “low water”. A central problem was the decreasing proportion of actually completed construction projects in relation to the permits granted. A new low point in completions is even feared for the current year.
The IVD president highlighted that minor alleviations are not sufficient in the current situation. The so-called “construction turbo” has so far barely been noticeable, and the introduction of building type E is still pending. Furthermore, the announced reform of new-build funding is only scheduled for 2027. Wohltorf criticised that these delays do not reach people as a powerful signal for more housing construction. At the same time, increasing regulation in the rental segment is creating uncertainty for potential developers who require the long-term viability of their investments.
According to the IVD, the announced “Pact for Home Ownership” also offers no concrete relief yet. Wohltorf pointed out the contradiction that three out of four German citizens aspire to home ownership, while the state levies a property transfer tax which can cause costs amounting to several months' salary. He called for strong impulses to create housing, an accelerated reform of new-build funding, and a reduction of burdens. It is crucial, he stated, that people feel that creating housing is once again worthwhile and that politics actively supports this endeavour, so that more permits actually result in more built dwellings.
Challenges for the Housing Market
- —Decreasing proportion of actual construction completions despite permits.
- —Lack of effectiveness of previous political initiatives such as the “construction turbo”.
- —Delayed implementation of important reforms, particularly new-build funding.
- —Regulation of the rental market and high ancillary purchase costs, hindering investment.
