BERLIN, Nov. 17 (Xinhua) -- German authorities issued permits in September for the construction of 19,300 apartments, down 29.7 percent compared to last September, according to figures published by the Federal Statistical Office (Destatis) on Friday.
In the first nine months, the number of permits issued dropped 28.3 percent to around 195,100, according to Destatis. The German government is aiming to build 400,000 apartments per year.
"(This segment of the construction industry) is in a deep crisis," said Felix Pakleppa, chief executive of the German Construction Federation (ZDB). The negative trend has continued for 16 months now. "On top of this, there has been an unprecedented wave of cancellations (for projects that already have a building permit)."
According to a survey published by the ifo Institute earlier this month, cancellations in residential construction reached a new high in October. "It's getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices," said Klaus Wohlrabe, head of surveys at ifo.
Earlier this week, the German Property Federation (ZIA) adjusted its forecast and expects a shortfall of 750,000 apartments in the country by 2025, 50,000 more than estimated at the beginning of 2023.
