The German construction industry is once again showing significantly more positive signs: in the first half of 2026, 15.1 per cent more homes were approved nationwide than in the same period last year. This is the strongest increase in a first half-year for ten years. At the same time, new orders in the main construction sector rose sharply in June. As reported by Handelsblatt, Tagesschau and haufe.de, among others, the latest figures point to a growing recovery in construction activity. While it is still too early to speak of a sustained turnaround given the persistently low starting point, the trend is clearly moving in the right direction for the first time in quite some time.
According to figures from the Federal Statistical Office, a total of 126,300 homes in new and existing buildings were approved between January and June 2026. This was 16,600 units more than in the same period of the previous year. However, the comparable figures for 2024 and 2025 – at 106,700 and 109,800 approved homes respectively – were at a very low level. Nevertheless, the current figures clearly indicate signs of a recovery in German housing construction. In June 2026, planning permission was granted for 21,600 homes, an increase of 13.8 per cent compared with June 2025. The recovery is particularly evident in new-build construction: here, the number of homes granted planning permission in the first half of the year rose to 103,100, an increase of 15.8 per cent.
Developments in multi-family housing construction are particularly relevant to the housing markets in major cities. In the first half of the year, 67,000 homes were approved, an increase of 9,700 units or 16.9 per cent compared with the first half of 2025. Detached and semi-detached houses also recorded increases of 12.7 per cent and 27.3 per cent respectively. The upturn is therefore extending across various segments of new-build housing.
The latest economic data for the main construction sector also point to a recovery in construction activity. In June, real, calendar-adjusted order intake was 11.3 per cent higher than in the same month of the previous year and 6.0 per cent higher than in the previous month. Compared with May, order intake rose by 8.5 per cent in building construction and by 4.0 per cent in civil engineering. Real turnover in the main construction sector increased by 6.6 per cent compared with June 2025. At the same time, the number of employees rose by 1.5 per cent to around 545,000. Another positive sign is that, in the less volatile three-month comparison, new orders from April to June 2026 were 5.7 per cent higher than in the previous three months.
Nevertheless, a degree of caution remains warranted. Representatives of the construction industry point out that approved homes are not necessarily built in the short term and that the current growth is starting from a low base. High construction and financing costs also remain a burden. The positive trend in planning approvals and new orders must therefore first become more sustained and translate into higher completion figures. Particularly in major cities with high demand, such as Berlin, where the housing shortage is especially acute, a significant expansion of supply remains crucial.
“Following several difficult years, rising numbers of planning approvals and new orders are important positive signs for the residential property market,” says Jacopo Mingazzini, CEO of The Grounds. “In Berlin and the surrounding area in particular, we urgently need more new housing. It is therefore crucial that these approvals are now turned into actual homes as quickly as possible. To achieve this, planning and approval procedures must be further accelerated, regulatory barriers removed and a reliable framework for private investment created. If this succeeds, the current upturn can develop into a sustainable recovery in new housing construction.”
