Shifting Trends in Germany's Housing Construction: Order Situation Still Tough ahead
Enhanced atmosphere prevails in residential construction sector - Challenges persist in managing orders - Enhancing Mood in Housing Construction: Current Order Condition Remains Challenging (Paraphrased from the original)
Let's dive into the current state of housing construction in Germany, shall we? Klaus Wohlrabe, the big cheese at Ifo surveys, paints a somewhat optimistic picture, admitting that while the mood is a tad brighter, it's still on the dull side. Companies have shown more positivity towards both the present scenario and the upcoming economic outlook. But whether the government's promised infrastructure package has any impact, well, that's still up for grabs.
But here's the kicker: the order situation remains rocky. According to Ifo, around half of the companies (51.2%) are still grappling with a scarcity of orders, slightly higher than what was reported in March (53.7%). On top of that, cancellations are on the rise. And by "on the rise," we mean up by 2.6 percentage points to 10.4%, which isn't the kind of growth we like to see!
On Thursday evening, Germany's new Housing Minister, Verena Hubertz (SPD), is set to unveil her plans in the Bundestag. In an exclusive interview with "Zeit Online," she's already hinted at state guarantees for financing new apartments.
The diddling-diddling government earlier promised to construct a whopping 400,000 new apartments annually. That number, however, doesn't seem to be a part of the coalition agreement between CDU, CSU, and SPD.
- Order Situation in Housing Construction
- Germany
- Munich
- Ifo Institute for Economic Research
- Housing Construction
- Klaus Wohlrabe
(Enrichment Data: Although data specifically for Munich is scarce, the Ifo Institute for Economic Research has reported a slight easing in the order situation in German residential construction. This improvement in sentiment does not necessarily erase the ongoing challenges in the sector, such as creating urgently needed living space, which persist despite a slight improvement in overall business climate indicators.)
- The current order situation in housing construction across Germany remains challenging, with approximately half of the companies still undersubscribed, according to the Ifo Institute for Economic Research.
- The new Housing Minister, Verena Hubertz, is expected to announce plans to address this issue, potentially including state guarantees for financing new apartments in Germany.
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