In Germany, the revenue of building construction was higher than that of any civil engineering or special construction segments in 2024. Within the civil engineering activities, road and railway construction was the largest segment, with a revenue of roughly 24.8 billion euros.

In 2024, the Germany Construction Market reached $429.69 billion, and is projected to surge to $542.49 billion by 2030 due to various government initiatives

Germany Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), Construction Type (New Construction, Renovation), Construction Method (Conventional On-Site, Modern Methods of Construction), Investment Source (Public, Private), and Geography (Berlin, Munich, Frankfurt, Hamburg, Rest of Germany). The Market Forecasts are Provided in Terms of Value (USD).

In 2023, there were construction works on 3.55 million square meters of existing residential buildings in Germany. Meanwhile, there were repair and maintenance works on 2.34 million square meter of existing non-residential buildings. The surface area of housing were there were works performed decreased after reaching a peak of 3.79 million square meters in 2016. Those figures were lower than area of new buildings constructed in Germany that year.

The Germany Commercial Construction Market Report is Segmented by Commercial Sector Type (Office, Industrial & Logistics, and More), by Construction Type (New Construction and Renovation), by Investment Source (Private and Public), and by City (Berlin, Frankfurt, Munich, Hamburg, and Rest of Germany). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The Germany commercial construction market size is estimated to grow at a CAGR of 4.30% in the forecast period of 2025-2034. The major market drivers include increasing urbanisation in Germany and rising investments in the construction sector.

The Germany construction market reached approximately USD 193.39 Billion in 2024. The market is projected to grow at a CAGR of 5.80% between 2025 and 2034, to reach a value of around USD 339.85 Billion by 2034.

The German construction market, valued at €404.18 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.78% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, increasing urbanization and population growth necessitate substantial investments in residential and commercial infrastructure. Secondly, government initiatives focused on infrastructure development, including investments in renewable energy projects and transportation networks, contribute significantly to market expansion. Furthermore, technological advancements in construction methodologies, such as prefabrication and Building Information Modeling (BIM), are improving efficiency and reducing project timelines, further stimulating market growth. However, the market faces challenges such as fluctuations in raw material prices, skilled labor shortages, and stringent environmental regulations. The market is segmented across various construction types, including building construction, heavy and civil engineering, land planning and development, and specialty trade contracting. End-user segments encompass residential, commercial, and public sectors, each contributing differently to overall market dynamics. Major players like STRABAG SE, HOCHTIEF AG, and others compete fiercely, employing various competitive strategies such as mergers and acquisitions, technological innovation, and geographic expansion to maintain market share. The German construction market's diverse segments present both opportunities and risks. The residential segment is driven by growing demand for housing, particularly in urban areas. Conversely, the commercial sector's growth depends on economic factors and investor confidence. The public sector relies heavily on government spending, making it susceptible to budgetary fluctuations. The significant presence of established players creates intense competition. However, the market also offers opportunities for smaller companies specializing in niche areas like sustainable construction or innovative technologies. The overall market outlook remains positive, driven by sustained infrastructure investment and technological advancements, while risks related to economic volatility and labor shortages need to be carefully managed for long-term success.

Construction output in Germany decreased 3.40 percent in May of 2025 over the same month in the previous year. This dataset provides the latest reported value for - Germany Construction Output - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The German commercial construction industry, valued at €109.49 million in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.28% from 2025 to 2033. This positive trajectory is driven by several factors. Increasing urbanization and a robust German economy fuel demand for new office buildings, retail spaces, and hospitality infrastructure. Government initiatives promoting sustainable construction practices and investments in infrastructure projects further contribute to market expansion. The industry is segmented by building type, with office building construction likely holding the largest share, followed by retail and hospitality. However, the institutional construction segment, encompassing schools, hospitals, and government buildings, is also expected to witness significant growth, driven by ongoing public investments in infrastructure and social facilities. While challenges exist, such as fluctuations in material costs and skilled labor shortages, the overall outlook remains optimistic, with strong potential for continued expansion throughout the forecast period. Leading companies like Leonhard Weiss GmbH & Co KG, Strabag AG, and Goldbeck Ost GmbH are well-positioned to capitalize on these market opportunities. Competition is fierce, necessitating continuous innovation and strategic partnerships to maintain market share. The growth within the individual segments will vary. Office construction might see slightly slower growth due to the increasing adoption of remote work models. Conversely, the hospitality segment could see accelerated growth due to an anticipated increase in tourism and business travel, following the recovery from recent global events. The "Other Types" segment, encompassing diverse projects, offers significant, albeit less predictable growth opportunities, as this category encompasses diverse niche projects and is less predictable in terms of growth rate compared to the established segments. Careful monitoring of economic indicators, government policies, and technological advancements will be crucial for stakeholders to navigate this dynamic market successfully. Recent developments include: August 2023: Gutersloh-based Schuttflix, a German digital marketplace and delivery platform for bulk construction supplies, announced that it had secured EUR 45 million (USD 47.37 million) in a fresh round of funding. Schuttflix says it will use the funds to enhance its technology, expand into new markets, diversify services, form partnerships, attract top talent, invest in marketing, prioritize customer support, and contribute to sustainability efforts in the construction sector., April 2023: Premier Inn, one of the UK’s largest hotel chains, wants to expand its budget brand in the larger German market, partly through mergers and acquisitions. On March 2, 2023, Premier Inn acquired six hotels with about 900 rooms in Germany that it’s refurbishing and converting to its brand. That deal brings its total open hotels in Germany to 51, equal to about 9,000 rooms. The company’s executives said they plan in the next year to add between 1,000 to 1,500 rooms in Germany, nearly as many as the 1,500 and 2,000 rooms it plans to add in the UK. It said it had a multi-year development pipeline of about 5,000 additional rooms in Germany.. Key drivers for this market are: Rising Commercial Property Development, Rapid Digitalization of Commercial Construction. Potential restraints include: Rising Commercial Property Development, Rapid Digitalization of Commercial Construction. Notable trends are: Increasing Investments in Green buildings is Driving the Market Growth.

The building construction sector is part of the main construction industry and is therefore one of the leading sectors in the construction industry. In the past five-year period, building construction initially operated in a positive market environment, but this was increasingly impaired in the years following the outbreak of the coronavirus pandemic. Demand for housing was high in the country's urban and suburban areas between 2016 and 2022. This and the historically low key interest rates in the European economic area ensured that sales in residential construction, the most important sector, grew very dynamically, particularly in the first half of the past five-year period. Overall, building construction achieved an average annual increase in turnover of 0.8% per year over the past five years.IBISWorld expects the industry to turn over 77.3 billion euros in 2024. This corresponds to a decline of 7% compared to the previous year. The European Central Bank's key interest rate hike in 2022 is currently having a particularly negative impact on the construction industry, which has now significantly reduced demand, particularly in residential construction. In addition, the Russian invasion of Ukraine led to a sharp increase in energy prices in the European economic area, which further intensified the upward trend in construction costs that had already been ongoing since 2021.In the next five years, the building construction industry is unlikely to be able to build on the dynamic growth trend from before the pandemic, with average annual sales growth of 1.4%. IBISWorld forecasts industry turnover of 82.6 billion euros for 2029. The ongoing skills shortage in the skilled trades and the increase in financing costs for property projects compared to the previous five-year period are likely to undermine industry growth in the coming years. The further implementation of digitalisation technologies offers potential to increase efficiency and productivity.

Germany Data Center Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The German construction industry expanded by 3.5% in real terms in 2019, driven by public and private sector investments in both building and civil engineering works. Growth in the construction industry was driven by growth in the residential sector, with an increase in building permits by 1.8% in 2019, and the government’s efforts to ease the housing shortage. Read More

In 2023, the turnover of the construction industry of Germany amounted to about 425.69 billion Euros. Between 2021 and 2023, the turnover rose by approximately 57.86 billion Euros.

The German residential construction market, valued at approximately €XX million in 2025, is projected to experience robust growth, with a Compound Annual Growth Rate (CAGR) of 5.50% from 2025 to 2033. This expansion is driven by several key factors. Firstly, a persistent housing shortage in major German cities fuels strong demand for new apartments and condominiums, particularly in urban centers experiencing population growth and inward migration. Secondly, increasing disposable incomes and favorable mortgage interest rates contribute to heightened purchasing power among potential homeowners. Government initiatives aimed at promoting sustainable building practices and energy efficiency further stimulate the market. The renovation segment is also experiencing growth, reflecting a focus on upgrading existing housing stock to meet modern standards and improve energy performance. The market is segmented by dwelling type (apartments & condominiums, landed houses & villas) and construction type (new construction, renovation). While the new construction segment dominates, the renovation sector is showing promising growth potential, driven by the aging housing stock and rising awareness of sustainable living. Key players like The Grounds Real Estate Development AG, KAEFER Construction, and Deutsche Wohnen SE are actively shaping the market landscape through innovative projects and strategic acquisitions. However, the market faces certain challenges. Rising construction material costs, labor shortages, and complex permitting processes can impact project timelines and profitability. Furthermore, increasing regulatory scrutiny regarding environmental standards and energy efficiency requirements presents both an opportunity and a potential restraint for developers. Despite these hurdles, the long-term outlook remains positive, with continued growth fueled by sustained demand and ongoing government support. The market's dynamic nature presents opportunities for both established players and emerging companies to capitalize on innovation, sustainable practices, and technological advancements within the construction sector. Recent developments include: January 2023: MPC Capital, an asset and investment manager, has acquired a new construction project in Nauen, Berlin, for its "ESG Core Residential Real Estate Germany" fund. The project is being built to the KfW-40 EE standard and meets extensive ESG criteria, which are required for the fund to invest. The development consists of seven multi-family buildings totalling 106 residential units and 127 parking spaces. The rentable living space is approximately 8,600 m2. The project is expected to be completed by the end of 2024., December 2022: Allianz Real Estate, on behalf of Allianz companies (Allianz), and Heimstaden Bostadinjectst have invested SEK 7,000 million (EUR 650 million (USD 703.58 Million)) in their existing Swedish joint venture, with the proceeds going toward debt repayment. Allianz and Heimstaden Bostad form a new joint venture that includes Allianz's German residential real estate portfolio. With a current occupancy of 97%, the new joint venture will own 38 properties with 3,135 homes in Düsseldorf, Greater Munich, Cologne, Bonn, Berlin, and Stuttgart.. Key drivers for this market are: 4., Rising Disposable Incomes4.; Government Initiatives4.; Growing Expatriate Population. Potential restraints include: 4., Regulatory Framework4.; The Risk of Oversupply. Notable trends are: Rising Home Prices in the Market.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Germany Residential Construction Market size was valued at USD 32.5 Billion in 2024 and is expected to reach USD 45.3 Billion by 2032, growing at a CAGR of 4.2% from 2026 to 2032.

Key Market Drivers:

Increasing Urbanization and Population Growth: Germany’s residential construction market is thriving due to urbanization and population growth. With over 83 million people in 2023, the demand for new residential properties, including apartments and homes, is increasing.

The German construction industry fared relatively well compared to its peers in Western Europe. Although the industry’s value-add in real terms contracted by 1.8% year on year (YoY) in Q3 2020, industry output grew strongly in the last quarter of the year, increasing by 5.2%, and this helped the industry register cumulative growth of 2.8% in 2020. Read More

In 2023, the number of enterprises in the construction industry in Germany amounted to about 382.86 thousand. Between 2021 and 2023, the number of enterprises rose by approximately 2.51 thousand.

The size of the construction industry as a share of the gross domestic product (GDP) in Germany was slightly higher in 2024 than a year earlier. In 2006, the construction sector amounted to *** percent of its GDP, showing that it was less important to the German economy than it is now. France and Germany were among the European countries with the highest construction revenue in 2023.