IN FOCUS / 2017-05-09
Low interest rates - more building permits
The number of building permits for dwellings has steadily increased since 2008. In 2016, the number of dwellings for which building permits were granted reached a record high (375,400) since 1999 (437,000). Compared with a year earlier, this was an increase of 19.8%.
One reason for this positive trend may have been the extremely low interest rates which made building especially attractive. Besides, real property is regarded as an interesting investment opportunity in times of low savings interest rates. This is especially true for the cities where housing supply is becoming increasingly tight.
The rising number of building permits in turn has effects on the construction industry. Here, the turnover of the main construction industry (regarding enterprises with 20 or more persons employed) increased by 7.5% to 70.9 billion euros in 2016 compared with 2015.


