Number of building permits continues to rise in October
19.12.2025
Tim-Oliver Müller, Chief Executive Officer
Figure: HDB/Mark Bollhorst
In October – for the fifth consecutive month – building permits recorded an increase compared to the same month last year. With a total of 19,900 dwellings (new builds and conversions in residential and non-residential buildings), 1,300 more dwellings (+6.8 per cent) were approved than in October 2024. Compared to October 2020 – before the housing crisis began – the number of permits is still very low, down 35 per cent. "Against this backdrop, the launch of KfW's one-off EH55-Plus subsidy of 800 million euros two days ago is a clear commitment by the federal government to creating more housing. It is now important that the funds are drawn down and used promptly. After an estimated 225,000 construction completions this year, completions next year are likely to fall below the 200,000 mark. In conurbations, there has been huge excess demand for affordable housing for years, and the situation is continuing to worsen. It is not until 2027 that building permits are expected to bottom out and the trend to reverse, which will also be reflected in the completion figures." With these words, Tim-Oliver Müller, Managing Director of the German Construction Industry Association, comments on the permit figures for October announced today by the Federal Statistical Office. From January to October 2025, there was an increase of 11.2 per cent compared to the same period last year, with around 195,400 dwellings approved. In view of the high interest rates and construction costs in a long-term comparison, a clear and long-term strategy for housing policy is needed for the coming year. Driven by a multitude of high regulatory requirements and regulations, costs would remain high. The federal states will have no choice but to simplify their respective building regulations in order to lower standards and building requirements and, as a result, construction costs.
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