Resurgence in Thuringia Housing Construction? An Unexpected Uptick
Growth in Housing: Increased Construction Activity Observed in Thuringia - Shift in Housing Scenario: Increased Housing Developments in Thuringia
Here's a twist in the housing market: Thuringia has seen a significant uptick in residential construction approvals in the first quarter of this year. From January to April 2025, a whopping 724 new apartments and buildings were approved, marking a staggering 37.4% increase compared to the same period last year.
Breaking it down, the most notable increase occurred in multi-family homes. A whopping 474 apartments were approved for these buildings, including a hefty 162 in dormitories. This represents a substantial 52.4% increase compared to the same period last year. Single-family homes also saw a 33.7% increase, with 230 building permits issued between January and April this year.
However, it's not all positive news—the market for apartments in two-family homes saw a decrease. According to the statistics, 20 approved building projects is more than half less than in the same period last year (-54.5%).
Interestingly, costs for builders have also risen substantially. The average costs per square meter of living space in new residential construction now stand at 2,281 euros, representing a 52% increase compared to the same period last year.
Although Thuringia is renowned for its abundant Shell Limestone (Muschelkalk), this eco-friendly material seems less relevant to the recent construction trends we're witnessing. The broader context suggests that the German housing industry has faced challenges in the past, with company closures surging by 20% in 2024 due in part to a shortage of skilled workers[3]. Germany's overall economic recovery is expected to be slow, with real GDP growth forecasted to be flat in 2025[1]. These factors might not support a strong increase in housing construction, making Thuringia's uptick all the more intriguing. So, while it's too early to declare a housing trend reversal in Thuringia, the data certainly indicates an unexpected uptick in new residential construction.
The community and employment policies in Thuringia might be playing a role in the unexpected uptick in housing construction, as an influx of potential homebuilders or workers could contribute to the rise in approvals. In light of the increasing costs for builders and the ongoing economic recovery challenges, financing and investing in real-estate projects in Thuringia's housing market could prove to be a savvy decision for those interested in the housing-market market.
