The construction industry in Germany: Making progress towards a turnaround, but considerable challenges remain.

The construction industry is at a turning point. After five years of declining construction volumes, a trend reversal is finally on the horizon for 2026. However, the road to recovery will be rocky. Although growth of two per cent is forecast, there is a significant discrepancy between the urgent demand for construction and the actual construction output. The housing shortage is particularly acute in cities, where infrastructure is clearly deteriorating. What needs to happen to get the construction industry back on track and remedy the housing shortage? Our joint report with DIW Berlin sheds light on current developments and urgent areas for action that will shape the future of the construction industry, as well as the necessary measures to address the most pressing challenges.

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