Long-Term Demand for Construction: Housing Construction Set to Grow, Public Sector Construction Shrinking Selected results from the “Ifo Construction Forecast for Germany”

According to the latest Ifo Construction Forecast, construction activity in Germany is set to grow moderately over the next decade. By 2021 construction volume should be worth a total of around EUR 262 billion (in 2000 prices) and should therefore be around 3% higher than in 2011. This should lead to average annual growth of around 0.3% for the next ten years through 2021. Housing construction, which is set to increase by 1 percent per year on average over the next 10 years, should play a key role in this growth. According to the current forecast, the construction of new residential buildings in particular will increase significantly in the next ten years. Commercial construction in 2021, on the other hand, should be around 2.5% lower than its 2011 level. The decline in public sector construction should total around 8% per year during this period.