Housing Construction Sentiment Comes Up a Notch - Still, the Current Order Scene Remains Tense
Improved Residential Construction Outlook, Yet Challenges Persist in The Housing Market - Construction industry's impact on individuals' moods: Current order conditions remain challenging
Let's get to the point: The housing construction mood is on the uptick - but it's still a slow climb according to Klaus Wohlrabe, head honcho of Ifo surveys. Companies are feeling more upbeat about both the present and future economic landscape. Yet, it's uncertain whether the government's proposed infrastructure package is making a difference, Wohlrabe notes. So, the industry is betting on a general upswing for the housing sector.
However, the order scene? Well, it ain't exactly stress-free. According to Ifo, over half (51.2%) of companies are still grappling with insufficient orders, compared to 53.7% in March. On the flip side, cancellations are on the rise. 10.4% of companies reported order cancellations - that's a 2.6 percentage point increase from last month.
On Thursday, the new Federal Minister of Housing, Verena Hubertz (SPD), will lay out her plans in the Bundestag. She's already hinted at government-backed financing for new apartments in an interview with "Zeit Online."
The previous traffic light government's promise to construct 400,000 new apartments per year isn't on the table in the coalition agreement between CDU, CSU, and SPD.
- Order Scene
- Germany
- Munich
- Ifo Institute for Economic Research
- Housing Construction
- Klaus Wohlrabe
- General Upswing
Insights:
Although specific details about Munich's housing construction order situation are scarce, the German construction industry is currently facing a decline, with a significant drop in orders first seen in early 2025. The residential construction sector has managed to stay afloat, with a 20% price-adjusted increase at the beginning of the year, but high inflation rates, increased construction material costs, and weakened demand are factors contributing to the overall decline. Specific information about Munich's housing construction order situation is best obtained directly from the Ifo Institute or Klaus Wohlrabe's official reports or statements.
- The current housing construction order scenario in Munich, Germany, mirrors the nationwide trend, with over half of companies still experiencing insufficient orders, as per the Ifo Institute for Economic Research.
- As the housing construction sector in Germany seeks a general upswing, it remains closely tied to the broader industry, finance, and business environment, with the proposed infrastructure package and government-backed financing potentially playing key roles.
