German construction industry boosts its economy

German construction industry boosts its economy
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84,000 residential building permits have been issued in Germany within the course of the first quarter of 2016, an increase of one third, Reuters reported on Friday.


According to the available data, this figure offers grounds for expectations that the construction industry will contribute to the growth of the German economy.

Meanwhile 5,149 of those buildings account for permits granted for hostel construction, including shelters for refugees and asylum seekers.

In 2015, the number of residential building permits grew to 310,000. However, in the experts’ opinion, 350,000 new homes are needed annually due to the lack of affordable housing. The situation has become more complicated because of the increased number of immigrants arriving in the country.

Demand surpassing supply has prompted a growth in property prices and rent in such cities as Berlin, Hamburg and Munich.