Declines in residential construction

According to a survey by the ifo Institute, the number of cancellations in residential construction continues to rise. In November, 16.7% of the companies surveyed were affected by cancellations. The growth of cancellations as well as the increase in construction prices, accompanied by higher interest rates, suggests a future decline in construction activity. This decline may contribute to excess demand and the frequently lamented housing shortage. In the long term, this will increase the attractiveness of existing properties as an investment. In particular, existing properties that have been upgraded in terms of energy efficiency will be in demand in the future.