Improved Construction Progress in Housing Sector - Challenges Persist Regarding Supply Order Management - Navigating supply chain complexities persists in housing construction, hindering improvement in overall mood.
Hey there! Let's talk about the current state of the housing construction sector, specifically in the bustling city of Munich, Germany. Klaus Wohlrabe, the head honcho at the Ifo Institute for Economic Research, shed some light on the situation.
Things are looking slightly better, as companies have begun to perk up regarding both the current state and the future economic outlook of the housing construction industry. Despite this, the overall order situation remains a touch nerve-wracking. Over half of the companies (51.2%) are still grappling with a shortage of orders, although this figure is slightly less than the 53.7% reported in March. The silver lining? Companies are keeping their fingers crossed for a broader upturn in the sector.
On the flip side, cancellations are on the rise, with 10.4% of companies reporting cancelled orders, representing a 2.6 percentage point spike from the previous month.
Elaborating on the future plans for the housing sector, the newly appointed Federal Minister of Housing, Verena Hubertz (SPD), is set to present her program in the Bundestag Thursday evening. In a sneak-peek interview with "Zeit Online," she mentioned potential state guarantees for financing new apartments.
The traffic light government's predecessors had campaigned on a promise of building 400,000 new apartments per year, but that figure does not appear in the coalition agreement between the CDU, CSU, and SPD.
Now, let's take a look at Germany's broader construction landscape. The industry has been struggling, with a steep decline in orders. In February, there was a price-adjusted drop of 7.5% compared to January, and year-over-year, there was a contraction of 0.5% in order volume. Fortunately, the residential construction sector did see a price-adjusted increase of 20% in the early months of the year.
The construction market in Munich has faced significant challenges due to strict building regulations and strenuous demand-supply imbalances. For instance, a court in Munich ordered the demolition of a house due to its 36-centimeter height discrepancy, which presents headaches for developers and homeowners alike.
The construction industry in Germany is also grappling with inflation, sky-high expenses, and weak demand, leading to a decrease in output. Political uncertainties following the administration's demise and the subsequent budget delay have augmented these obstacles.
For more detailed information about the housing construction market in Munich, it's best to check out the publications or reports directly from the Ifo Institute for Economic Research or Klaus Wohlrabe. Hope this helped! Cheers!
- Order Situation
- Germany
- Munich
- Ifo Institute for Economic Research
- Housing Construction
- Klaus Wohlrabe
- The order situation in the housing construction industry, as reported by the Ifo Institute for Economic Research, remains an area of concern in Munich, Germany, with over half of the companies still facing a shortage of orders.
- The newly appointed Federal Minister of Housing, Verena Hubertz, plans to present her program in the Bundestag, discussing possible state guarantees for financing new apartments as part of the government's efforts to support the housing construction sector in Germany.
