Key Takeaways
- In 2023, the German construction sector's total turnover reached €421.3 billion, marking a 2.1% increase from 2022 despite inflationary pressures.
- The construction industry's contribution to Germany's GDP stood at 5.4% in 2023, with nominal growth of 3.8% year-over-year.
- Germany's construction output volume index rose by 1.2% in 2023 compared to 2022, adjusted for price changes.
- The German construction employment totalled 2.38 million in 2023, up 1.5% from 2022.
- Construction sector unemployment rate was 3.2% in Germany in 2023, below the national average of 5.9%.
- Average monthly gross earnings in construction reached €4,120 in 2023, a 5.8% increase year-over-year.
- In 2023, Germany issued 245,300 building permits for residential units, down 12.5% from 2022.
- Total living space approved in building permits was 72.1 million m² in 2023.
- Completions of residential buildings totalled 178,900 units in 2023, a decrease of 8.4%.
- Steel usage in construction totalled 12.7 million tons in 2023, up 3.4%.
- Cement production for domestic construction was 28.5 million tons in 2023.
- Construction material price index rose 8.2% in 2023, led by insulation at +15%.
- In 2023, 42% of new buildings in Germany achieved KfW 40 energy standard or better.
- Renewable energy share in construction site power usage was 28% in 2023.
- CO2 emissions from construction activities fell 7.5% to 45.2 million tons in 2023.
Germany's construction industry grew modestly in 2023 despite economic challenges and a housing slowdown.
Building Permits and Completions
- In 2023, Germany issued 245,300 building permits for residential units, down 12.5% from 2022.
- Total living space approved in building permits was 72.1 million m² in 2023.
- Completions of residential buildings totalled 178,900 units in 2023, a decrease of 8.4%.
- Non-residential building permits covered 45.2 million m² in 2023.
- In 2023, 1,456 new residential buildings were completed, averaging 123 units each.
- Building permits for single-family homes numbered 45,200 in 2023, down 15%.
- Completion rate for permitted residential floor space was 85% in 2023.
- Office building completions totalled 2.1 million m² in 2023.
- Permits for civil engineering projects increased by 5.2% in volume to 28.4 million m³ in 2023.
- Average processing time for building permits was 3.2 months in 2023.
- Multi-family house permits fell 14.3% to 145,600 units in 2023.
- Industrial building completions reached 1.8 million m² usable space in 2023.
- Rejection rate for building permits was 4.1% in 2023 due to zoning issues.
- New completions in social housing numbered 12,500 units in 2023.
Building Permits and Completions Interpretation
Economic Indicators
- In 2023, the German construction sector's total turnover reached €421.3 billion, marking a 2.1% increase from 2022 despite inflationary pressures.
- The construction industry's contribution to Germany's GDP stood at 5.4% in 2023, with nominal growth of 3.8% year-over-year.
- Germany's construction output volume index rose by 1.2% in 2023 compared to 2022, adjusted for price changes.
- In Q4 2023, the construction industry's turnover increased by 0.8% month-over-month, reaching €104.5 billion seasonally adjusted.
- The value added by the German construction sector was €208.7 billion in 2022, with a real growth rate of -0.5%.
- Construction investment in Germany amounted to €297 billion in 2023, accounting for 7.2% of gross fixed capital formation.
- The German construction market is projected to grow at a CAGR of 2.5% from 2024 to 2028, reaching €450 billion by 2028.
- In 2023, building construction turnover was €284.2 billion, while civil engineering contributed €137.1 billion.
- Nominal construction turnover grew by 4.2% in 2023, driven by higher prices, but real terms showed stagnation.
- The construction sector's gross value added per employee averaged €78,500 in 2022.
- Germany's construction productivity index stood at 102.3 in 2023 (base 2015=100).
- Export turnover from German construction-related services reached €12.4 billion in 2023.
- The sector's intermediate input ratio was 68.5% of turnover in 2022.
- Construction investment as a percentage of GDP was 6.8% in 2023.
- Real construction output declined by 1.1% in new orders during 2023.
Economic Indicators Interpretation
Employment Statistics
- The German construction employment totalled 2.38 million in 2023, up 1.5% from 2022.
- Construction sector unemployment rate was 3.2% in Germany in 2023, below the national average of 5.9%.
- Average monthly gross earnings in construction reached €4,120 in 2023, a 5.8% increase year-over-year.
- Women comprised 12.4% of the construction workforce in Germany in 2023.
- There were 67,200 construction companies employing over 20 workers in 2022.
- Skilled worker shortage affected 45% of construction firms in Germany in 2023 survey.
- Part-time employment in construction was 8.7% of total hours in 2023.
- Apprenticeships in construction numbered 128,500 in 2023, covering 15 trades.
- Labor productivity in construction grew by 1.8% in 2023 to €72,300 per full-time equivalent.
- Foreign workers made up 18.2% of construction employment in 2023, mainly from Poland and Romania.
- Overtime hours in construction averaged 2.4 hours per week per employee in 2023.
- Construction firms reported 32% vacancy rate for skilled trades in 2023.
- Self-employment in construction accounted for 22.5% of the workforce in 2022.
- Youth unemployment in construction was 2.8% in 2023.
- Digital skills training covered 15% of construction workforce in 2023 programs.
Employment Statistics Interpretation
Material Usage and Costs
- Steel usage in construction totalled 12.7 million tons in 2023, up 3.4%.
- Cement production for domestic construction was 28.5 million tons in 2023.
- Construction material price index rose 8.2% in 2023, led by insulation at +15%.
- Timber consumption in construction reached 15.2 million m³ in 2023.
- Asphalt production for roads was 25.8 million tons in 2023.
- Wage costs in construction increased to €52.3 per hour in 2023, up 6.1%.
- Concrete ready-mix volume was 52.4 million m³ in 2023.
- Energy costs for construction firms rose 12.5% to €18.7 billion in 2023.
- Glass usage in building facades totalled 4.2 million tons in 2023.
- Rental costs for construction equipment averaged €45/hour for excavators in 2023.
- Insulation material consumption grew 4.1% to 78 million m³ equivalent in 2023.
- Brick production for construction was 8.9 billion units in 2023.
- Total construction costs index was 128.5 (2015=100) in 2023.
- PVC products for construction reached 1.8 million tons in 2023.
Material Usage and Costs Interpretation
Sustainability and Innovation
- In 2023, 42% of new buildings in Germany achieved KfW 40 energy standard or better.
- Renewable energy share in construction site power usage was 28% in 2023.
- CO2 emissions from construction activities fell 7.5% to 45.2 million tons in 2023.
- 65% of construction firms adopted BIM (Building Information Modeling) by 2023.
- Recycled aggregates usage reached 31% of total aggregates in 2023.
- Solar PV installations on new buildings covered 2.1 GW in 2023.
- Green building certifications (DGNB/LEED) numbered 1,250 projects in 2023.
- Water savings in construction processes averaged 22% through recycling in 2023.
- Digital twin implementations in large projects reached 45% in 2023.
- Low-carbon concrete usage grew to 12% of total in 2023.
- 78% of firms reported using drone surveys for site monitoring in 2023.
- Embodied carbon in new office buildings reduced by 18% since 2018 baseline in 2023.
- Modular prefabrication share in residential construction was 22% in 2023.
- AI-optimized material selection used in 35% of mega-projects in 2023.
- Waste recycling rate in construction hit 92% in 2023.
- Heat pump installations in new builds reached 65,000 units in 2023.
Sustainability and Innovation Interpretation
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