German housing construction permits fall in first nine months. (picture alliance / dpa)
Fewer permits for constructing new or converting old housing were issued over the first nine months of this year, despite strong demand, Germany's Federal Statistics Office reported on Wednesday.
The housing authorities granted permits for new developments and refurbishments for 257,900 homes, down 1.9 per cent on the same period last year.
Permits were issued for around 221,800 homes in new blocks, down 3 per cent, or 6,900 units, on the year.
Permits for semi-detached two-family houses fell by 1.5 per cent, and for larger developments by 3.4 per cent, while there was a slight rise of 0.5 per cent in free-standing homes.
The statisticians noted that the number of new permits had for some time been higher than the number of construction completions.
Government officials and the construction sector are calling for up to 400,000 homes to be built every year to cope with strong demand for housing. Last year, permits were issued for just under 302,800 new homes in residential areas.
Factors holding back the construction of new housing include lack of space in the major conurbations, resulting in rises in land prices, and the lack of skilled labour.
Last month, the Berlin Senate passed measures to cap rent rises in the capital. The left-of-centre coalition pointed to soaring rents that are pricing key workers and the less well-off out of the market. Other major centres are facing similar problems.
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A single purchase
