Germany Residential Construction Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 5.45% from 2023 to 2033
• The Germany Residential Construction Market Size is Expected to Hold a Significant Share by 2033

The Germany Residential Construction Market Size is Anticipated to Hold a Significant Share by 2033, growing at a CAGR of 5.45% from 2023 to 2033.

Market Overview

Residential construction involves constructing a building or a specific portion of a building designated for living or sleeping purposes for one or more individuals who share a common household. Residential building construction is carried out for structures intended for living. Apartments and single-family homes can be categorized as residential structures. Residential construction encompasses single-family homes, townhouses, condos, and duplexes. The German housing construction sector is powered by the large population of immigrants in the country who are in need of new residences. Moreover, government initiatives are fueling the market by providing affordable housing and meeting the growing demand for housing in the country. As of 2019, Germany has a population of 83 million, making it the most populous country in Europe. Most of the structures in its property portfolio are residential in nature. Germany has around 18.8 million buildings in its residential building stock, with the vast majority (83%) being single and two-family buildings, while only 17% are multi-family buildings. Yet, multi-family buildings have a higher number of residential units (21.5 million) compared to single and two-family buildings (18.8 million). Various types of ownership structures exist in residential buildings, including private owners, owner associations, municipal housing companies, and private housing companies.

Report Coverage

This research report categorizes the market for the Germany residential construction market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany residential construction market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany residential construction market.

Driving Factors

In 2022, the residential construction section made up about 15% of the Germany construction market and is set to hit USD 80 billion by 2032. Business expansion is being propelled by low interest rates, high housing demand, and government efforts to combat housing shortages. Moreover, sustainable and innovative construction methods are becoming increasingly popular. In general, these factors are responsible for the favorable development in Germany's housing construction sector, offering essential housing options for the increasing population. The Germany real estate market will be influenced by the green transition trend in the future. The Germany government is actively promoting energy-efficient housing due to the building sector's contribution of 16% to Germany's total greenhouse gas emissions.

Restraining Factors

One of the primary challenges encountered by the Germany market is the rise in material expenses. Furthermore, there have been remarkable increases in the prices of essential construction materials like wood, metal, and cement.

Market Segmentation

The Germany residential construction market share is classified into type and construction type.

• The apartments & condominiums segment is expected to hold the largest market share through the forecast period.   

The Germany residential construction market is segmented by type into apartments & condominiums and landed houses & villas. Among them, the apartments & condominiums segment is expected to hold the largest market share through the forecast period. Apartments and condominiums both consist of multiple units, but they vary in terms of ownership. Moreover, apartments are commonly owned by one entity, frequently a property management firm, whereas condos are made up of individually owned units in a larger development.

• The new construction segment dominates the market with the largest market share over the predicted period.

The Germany residential construction market is segmented by construction type into new construction and renovation. Among them, the new construction segment dominates the market with the largest market share over the predicted period. Construction of new buildings is a significant sector in the Germany market. Furthermore, single-family homes are a prominent category in new residential construction. Additionally, these independent buildings provide families with the privacy and space they seek.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Germany residential construction market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Arup
• BAUER Spezialtiefbau GmbH
• GOLDBECK GmbH
• KAEFER Construction
• Max Bogl
• Deutsche Wohnen SE
• SAGA Siedlungs-Aktiengesellschaft Hamburg
• Degewo
• Vivawest
• The Grounds Real Estate Development AG
• Taurecon Real Estate Consulting GmbH
• Mosse Zentrum Service GmbH
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2023, MPC Capital, a firm that manages assets and investments, purchased a new building project in Nauen, Berlin, for its fund "ESG Core Residential Real Estate Germany". The project is being constructed to the KfW-40 EE standard and fulfills thorough ESG criteria, which are necessary for the fund's investment. The project comprises seven apartment buildings with a total of 106 residential units and 127 parking spots. The available living area measures around 8,600 square meters. The completion of the project is anticipated by the end of 2024.

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Germany Residential Construction Market based on the below-mentioned segments:

Germany Residential Construction Market, By Type

• Apartments & Condominiums
• Landed Houses & Villas

Germany Residential Construction Market, By Construction Type

• New Construction
• Renovation