Germany’s housing crisis continues to deepen due to a record decline in new orders in the construction sector. This was reported by BoombergWith reference to a survey by Ifo, the Munich Institute for Economic Research.
According to the survey, 49.1% of construction companies reported order shortages in November. This represents an increase of 0.4 points compared to the previous month and the eighth consecutive month. The current figure is a record since statistics began in 1991.
Additionally, the share of construction companies experiencing financial difficulties increased from 9.9% in October to 11.1%. Builders are losing customers en masse and the mood in the industry remains “icy”, according to Ifo’s head of research, Klaus Wohlrabe.
According to the Ifo survey, the share of companies reporting only the cancellation of advance orders fell slightly to 21.5% compared to 22.2% in October. In general, the housing construction sector confidence index fell to a record low level. However, according to Wohlrabe, the situation is unlikely to improve in the near future.
At the beginning of September it became known that European authorities did not do this. deal with Housing demand is increasing due to refugees. According to Blomberg, the Ukraine crisis revealed structural problems in the housing market in the European Union.
Europe before came We are in the deepest housing crisis in decades.