FRANKFURT (Reuters) -Home building permits in Germany rose 7.9% in June from a year earlier, statistics office data showed on Monday, as the nation’s troubled property industry continues to find its footing.
The monthly increase is from low levels and follows a drop in the previous month.
Germany’s property sector, which began to shrink in 2022, is undergoing its most severe slump in decades. Permits are an important indicator of future construction activity.
“Instead of an upturn, we are seeing the old pattern: slight ups and downs at historically low levels. There is currently no impetus that could pull residential construction out of the crisis,” said Felix Pakleppa, head of the Central Association of the German Construction Industry.
For the first six months of the year, permits rose 2.9%, but the statistics office noted that in the year-earlier period, permits were at their lowest level since 2010.
Aygul Ozkan, CEO of the property industry association ZIA, said the figures were positive at first glance but overall disappointing.
“There is no sign of a trend reversal,” Ozkan said.
(Reporting by Tom Sims and Rene WagnerEditing by Ludwig Burger and Thomas Seythal)
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