Post by sevenofnine on Jan 10, 2024 12:29:52 GMT -5
Yeah hard to get materials
Germany's construction sector has little to look forward to this year, with spending falling for the first time since the financial crisis in 2009, two prominent research institutes said on Wednesday.
The current crisis comes after the property sector experienced a yearslong boom driven by low interest rates and strong demand.
Rates and costs have now risen, leading to the cancelation of deals and difficulties in receiving bank financing. The problems have pushed a number of developers into insolvency.
What did the institutes say?
According to a study by the DIW institute to be published Wednesday, construction volume will shrink by 3.5% to €546 billion ($597.38 billion) in 2024.
It will then recover slightly with a 0.5% increase in 2025, DIW said
www.dw.com/en/german-construction-sector-faces-major-slump-in-2024/a-67935134
Germany's construction sector has little to look forward to this year, with spending falling for the first time since the financial crisis in 2009, two prominent research institutes said on Wednesday.
The current crisis comes after the property sector experienced a yearslong boom driven by low interest rates and strong demand.
Rates and costs have now risen, leading to the cancelation of deals and difficulties in receiving bank financing. The problems have pushed a number of developers into insolvency.
What did the institutes say?
According to a study by the DIW institute to be published Wednesday, construction volume will shrink by 3.5% to €546 billion ($597.38 billion) in 2024.
It will then recover slightly with a 0.5% increase in 2025, DIW said
www.dw.com/en/german-construction-sector-faces-major-slump-in-2024/a-67935134
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