Decrease in housing construction continues, excluding single-family homes.
In the initial quarter of 2025, the approval of over 6,000 apartments in Baden-Württemberg witnessed a six percent decline compared to the same period in 2024. The decrease was particularly notable in new residential constructions, with 4,600 approvals for new building projects, representing a nine percent drop year-on-year. Notably, an increase was observed in single-family homes, with building permits increasing by 22 percent compared to the first quarter of last year.
The German property market, encompassing residential and commercial properties, has observed a surge in prices, with the vdp property price index rising in the first quarter of 2025[2]. While the residential sector has displayed a stronger increase, the exact factors influencing the decrease in apartment and new residential building approvals in Baden-Württemberg remain unclear.
Potential contributing factors could include regulatory changes, economic conditions, or changes in demand, as well as local factors specific to Baden-Württemberg, such as zoning regulations, local economic conditions, or changes in government policies. Without further data or reports, it is challenging to precisely determine the reasons for any decrease in approvals. However, possible influences might stem from a combination of national trends and local factors.
The surge in prices of the German property market, including real-estate and housing-market, is evident with the rise in the vdp property price index in the first quarter of 2025. Despite this, the Approval of other residential apartments in Baden-Württemberg saw a six percent drop compared to the same period in 2024, possibly due to a combination of national trends, economic conditions, changes in demand, and local factors.
