(de-news.net) – This year, rents in numerous German cities have risen significantly, with an average increase of approximately four percent, as reported by the German Institute for Economic Research (DIW). In contrast, the purchase prices for building plots, homes, and apartments have decreased by around five percent compared to 2023, with notable declines in the prices of single-family homes in major cities. The DIW anticipates that purchase prices may increase next year due to lower credit interest rates and historically low vacancy rates, with Berlin’s vacancy rate at just one percent.

In October 2024, 18,600 housing units were approved for construction in Germany, marking an 18 percent decrease (4,100 permits) from October 2023, according to the Federal Statistical Office (Destatis). From January to October 2024, 175,800 housing units were approved, representing a 19.5 percent decrease (42,600 permits) from the same period last year. These statistics encompass permits for new residential and non-residential buildings, as well as new units in existing buildings.

Specifically, in newly constructed residential buildings, 14,800 units were approved in October 2024, reflecting a 23 percent decrease (4,400 units) from the previous year. From January to October 2024, 143,500 new units were approved, a decrease of 22.2 percent (41,000 units) compared to the previous year.

Building permits for single-family houses declined by 23.6 percent (9,800 units) to 31,800. Permits for two-family houses decreased by 13.6 percent (1,700 units) to 10,700. Permits for multi-family houses, the most prevalent type of building, fell by 22.2 percent (26,300 units) to 92,000.