Continuation of falling number of building permits for new apartments

The Federal Statistical Office announced on 18.01.2023 that 16.3% fewer building permits for new-build apartments were issued in November 2022 than in the previous year. Incoming orders in residential construction also fell by 29.0% compared to the previous year. It is to be expected that the sharp rise in interest rates. The sharp rise in interest rates, construction costs and the cost of living means that people who were previously willing to build no longer have the financial means to realize their projects. In the medium term, this is expected to lead to increased demand on the rental market and consequently to an increase in rent levels in sought-after residential areas.