German housing completions plummet to the lowest level since 2012

In 2025, Germany saw a significant drop in new housing completions, with 206,600 apartments built – an 18% decrease from the previous year, according to Destatis.

Destatis HQ

This marks the second consecutive year of decline, bringing the number of completed dwellings to its lowest since 2012. The figures include new units in both residential and non-residential buildings, as well as conversions.

New residential buildings accounted for 172,600 completed dwellings, a 20% drop. This decline affected all types of housing: single-family homes were down 23.3% (41,800 units), two-family homes fell 21.4% (13,800 units), and the largest category, multi-family dwellings, saw an 18.9% reduction (109,800 units). Student halls of residence also experienced a 15.1% decrease (7,200 units).

Additionally, 3,300 dwellings were created in new non-residential buildings, a 31.8% decrease, and 30,700 dwellings resulted from conversions of existing buildings, a slight 1.8% decrease.

Geographically, the decline was more pronounced in eastern Germany, where completed new residential dwellings fell by 34.3% compared to a 16.7% drop in western Germany. Multi-family dwellings in the east saw a 38.3% reduction, while the west experienced a 13.9% decrease.

The average construction time for a new apartment in a residential building increased to 27 months in 2025, up from 26 months in 2024 and 20 months in 2020. The average living space for new apartments continued its trend of decreasing, reaching 95.2 m2 in 2025, compared to 116.4 m2 in 2007.

Despite the fall in completions, building permits issued in 2025 increased by 10.6% to 238,100, exceeding the number of completed dwellings. The construction backlog (approved but not yet completed apartments) remained stable at 760,700 units. However, expired building permits reached a 20-year high of 35,700 in 2025, a quarter more than in 2024.

Construction activity in non-residential buildings also decreased, with the enclosed space shrinking by 3.8% to 170.9 million cubic meters in 2025, primarily driven by a 19.5% decline in office and administrative buildings.